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MESSAGES OF THE PRESIDENT

GLORIA MACAPAGAL-ARROYO

2001-2010

BOOK 14 VOLUME 4

Executive Orders Part 4

President Gloria Macapagal-Arroyo, Fourteenth President of the Philippines
and Fourth President of the Fifth Republic.

MESSAGES OF THE PRESIDENT

GLORIA MACAPAGAL-ARROYO

2001-2010

BOOK 14 I VOLUME 4

Executive Orders Part 4

Messages of the President Book 14: Gloria Macapagal-Arroyo
Volume 4 Part 4

Presidential Communications Development and Strategic Planning Office

http://www.gov. ph

http://www.malacanang.gov.ph

http://www.pcdspo.gov.ph

ISBN 978-621-8032-38-5

All rights reserved. The content of this publication may be copied, adapted, and
redistributed, in whole in part, provided that the material is not used for commercial
purposes and that proper attribution be made. No written permission from the publisher
is necessary. Some of the images used in this publication may be protected by restrictions
from their original copyright owners.

Published exclusively by

The Presidential Communications Development

and Strategic Planning Office

Office of the President of the Philippines

3/F New Executive Building,

Malacanan Palace, San Miguel, Manila
Teh: 736-0719, 736-0718
Fax no.: 736-6167
Website: http://www.pcdspo.gov.ph

Book design by the Presidential Communications
Development and Strategic Planning Office

Published in the Philippines.

The National Library of the Philippines CIP Data
Recommended entry:

Philippines. President (Arroyo: 2001-2010)

Messages of the President: Gloria Macapagal-Arroyo, 2001-2010,
Book 14, Volume 4, Executive Orders Part 4 / Presidential Communication
Development and Strategic Planning Office. - Manila: Presidential
Communications Development and Strategic Planning Office, 2016.
pages; cm

ISBN 978-621-8032-38-5

Contents: vol. 1. Official Week and Month in Review - vol. 2.
Appointments and Designations - vol. 3. Historical Documents and
Papers - vol. 4. Executive Orders - vol. 5. Administrative Orders - vol. 6.
Proclamations - vol. 7. Other Issuances - vol. 8. Cabinet Minutes.

1. Arroyo, Gloria Macapagal-, President - Philippines - 2001-2010.
2. Presidents - Messages - Philippines. 3. Philippines - Politics and
government - 2001-2010. I. Title.

959.9061092

DS686.6.A77 2016

P620160218

The Messages of the President Book 14: Gloria Macapagal- Arroyo Volume 4 Part 4 was
compiled and published by the Presidential Communications Development and Strategic
Planning Office in May 2016 in Manila, Philippines.

THE REPUBLIC OE THE PHILIPPINES

BENIGNO S. AQUINO III

President of the Philippines

PAQUITO N. OCHOA, JR.

Executive Secretary

JOSE RENE D. ALMENDRAS
Cabinet Secretary

MARIANO DIMAANDAL

Director IV, Malacanang Records Office

PRESIDENTIAL COMMUNICATIONS
DEVELOPMENT AND STRATEGIC PLANNING OEEICE

MANUEL L. QUEZON III

Undersecretary of Presidential Communications
Development and Strategic Planning

JAN MIKAEL dL. CO

Assistant Secretary

Senior Presidential Speechwriter and Head of Correspondence Office

JUAN POCHOLO MARTIN B. GOITIA

Assistant Secretary
Managing Editor, Official Gazette

GINO ALPHONSUS A. BAYOT
Director V

Head, Research Division

EDGAR RYAN S. EAUSTINO
Head, Presidential Museum and Library

JONATHAN E. CUEVAS

MA. ROMMIN M. DIAZ
Director III

Head Executive Assistant

Director IV
Technical Division

YOLANDO B. JAMENDANG JR.

TERESITA L. MENDIOLA

Chief Administrative Officer

Director II

Head, Message Crafting Division

KATHERINE AIRA M. ESPINO

MARK PHB.IPPE P. LEGASPI

KRISTINA D. JAVIER

Media Monitoring

Institutional Memory
Official Gazette

Heritage

SASHA B. MARTINEZ
Social Media

RAYMOND ANDREW MAYMAY

Associate Editor
Official Gazette

ATTY. SARAH Q. SISON

Legal

CHRISTIAN E. SOQUENO

Citizen Engagement
Official Gazette

Messages of the President Book 14: Gloria Macapagal-Arroyo

Volume 4 Part 4

PUBLICATIONS DIVISION

Presidential Communications Development
and Strategic Planning Office

MANUEL L. QUEZON III
Editor in Chief

JUAN POCHOLO MARTIN B. GOITIA

Managing Editor

JONATHAN E. CUEVAS
Technical Director

KATHERINE AIRA M. ESPINO

Project Manager 2014-2016

MARY CLAIRE LORRAINE CAPUL

Project Manager 2016

MARK PHILIPPE P. LEGASPI

Head, Heritage Division

CAMILLE ROSE B. DUEOURT
Project Coordinator

GAMIL BANCOLITA
SCHURLYNS BIANG
MARY CLAIRE LORRAINE CAPUL
JERICO CATALLA
ANGELA KAYE CRESCINI
KRIS RICHARD GERONIMO
JUSTIN HAROLD HINGCO
PAOLA MELGAZO
ALFREDO NAVARRO III
Institutional Memory

KRIZIA ALMENARIO
NATHAN ANDRADA
JAMILLE DOMINGO
MA. KATRINA FERNANDO
GRACE GUIANG
MARIA ANNA GUMAPAC
MARIA THERESA LAMPA
JOHN RIMHER MANUBAY
FRANCES MARA MENDOZA
KARLO OROPESA
PATRICIA CARLA RAYMUNDO
Institutional Memory 2012-2015

JOSELITO ARCINAS
CHEREY ANN MAE BIGAY
COLINE ESTHER CARDENO
ROBERTO DANIEL DEVELA
FRANCIS KRISTOFFER PASSION
Researchers

LARISSA ANGELA SALAZAR
SARAH JESSICA WONG
Editors

JOI MARIE ANGELICA
INDIAS

Graphic Designer

MA. KRISTINA ABELLA
MA. ROMMIN DIAZ
LANCIE MITZI ONG
ALEXANDRIA SUPLIDO
ARMIL ORDIALES
JESSIE CRUZ

MICHAEL LOUIS BAUTISTA
Support Staff

OFFICIAL GAZETTE

ARROYO I Volume 4

INTRODUCTION

As the President’s chief message-crafting body, the Presidential Communications Development
and Strategic Planning Office (PCDSPO), is mandated to provide strategic communication leadership
and support to the Executive Branch, its composite agencies, and instrumentalities of government.

The PCDSPO is also mandated to act as custodian of the institutional memory of the Office of
the President. One of our projects is the continuation of the series of books called the Messages of the
President, started in 1936 by Jorge B. Vargas, Executive Secretary to President Manuel L. Quezon.
The series was a wide collection of executive issuances, speeches, messages, and other official papers
of the President. The volumes were intended to serve as the definitive compilation of presidential
documents. The series was continued until the Quirino administration, although the series for the
Presidential administrations of Presidents Quezon, Roxas, and Quirino were never completed.

In 2010, President Benigno S. Aquino III ordered the revival of the series and the constitution of a
complete set, covering all 15 presidential administrations. With pride, we continue what Vargas began.

We would like to extend our gratitude to our partners for without whose gracious cooperation,
this project would have not been possible.

A note on organization: Each presidential administration’s messages are in book form, compiled
and subdivided into volumes. The books are as follows:

Book 1: Emilio Aguinaldo
Book 2: Jose P. Laurel
Book 3: Manuel L. Quezon
Book 4: Sergio Osmena
Book 5: Manuel Roxas
Book 6: Elpidio Quirino
Book 7: Ramon Magsaysay
Book 8: Carlos P. Garcia
Book 9: Diosdado Macapagal
Book 10: Eerdinand E. Marcos
Book 11: Corazon C. Aquino
Book 12: Eidel V. Ramos
Book 13: Joseph Ejercito Estrada
Book 14: Gloria MacapagaTArroyo
Book 15: Benigno S. Aquino III

Each book is subdivided into the following volumes:

Volume 1: Official Weeks/Months in Review
Volume 2: Appointments and Designations
Volume 3: Historical Papers and Documents
Volume 4: Executive Orders
Volume 5: Administrative Orders
Volume 6: Proclamations

MESSAGES OF THE PRESIDENT

ARROYO I Volume 4

Volume 7: Other issuances
Volume 8: Cabinet minutes

We hope that this collection will be a useful and vital reference for generations to come.

OFFICIAL GAZETTE

ARROYO I Volume 4

PREFACE

On July 30, 2010, President Benigno S. Aquino III issued Executive Order No. 4, which effectively
renamed what was previously called the Malacanang Museum into the Presidential Museum and
Library (PML) and placed it under the supervision and control of the Presidential Communications
Development and Strategic Planning Office (PCDSPO). The PML is responsible for preserving,
managing, and promoting the history and heritage of the Philippine presidency. It is the principal
historical and artistic repository in support of the institution of the presidency, for the benefit of
the Republic and the Lilipino people. In partnership with the PCDSPO, which has pioneered the
publication of the Official Gazette of the Republic of the Philippines as a web archive and information
website, the PML has taken this mandate and placed it on the cutting edge of the information age.

Much has been done over the past years, under the administration of President Aquino III, to
digitize executive issuances, speeches, letters, and other presidential papers; and publish them online.
The project is not limited to a single administration, nor does it discriminate. This collection, published
as databases, as well as print and e-publications, includes documents from the presidency of Emilio
Aguinaldo to the current Aquino administration. This represents the government’s allegiance to
transparency, continuity, and the fostering of an informed citizenry, as well as an effort, in earnest, to
preserve the institutional memory of the Presidency. All this was done not just for the posterity, but for
the current generation and the ongoing task of nation building.

The PML are proud partners of the Official Gazette and PCDSPO team, to whom we made the
collections available. We sincerely hope that this series will serve as a vital reference to educators,
students, journalists, lawyers, historians, and the public at large.

OFFICIAL GAZETTE

ARROYO I Volume 4

FOREWORD

This is the fourth volume of President Gloria MacapagaT Arroyo’s official papers, which
constitutes the 14th book of the Messages of the President series. The series was started in 1936 by
Executive Secretary Jorge B. Vargas, during the first year in office of Manuel L. Quezon, the first
President of the Commonwealth of the Philippines. This volume collects President Arroyo’s Executive
Orders, which provide for rules of a general or permanent character in implementation or execution of
constitutional or statutory powers.

OFFICIAL GAZETTE

ARROYO I Volume 4

BOOK 14

PRESIDENT GLORIA MACAPAGAL-ARROYO

President Gloria Macapagal-Arroyo was the fourteenth President of the Philippines and was the
fourth President of the fifth Republic. She assumed office on January 20, 2001, serving the remainder
of the term of her predecessor Joseph Ejercito Estrada. President Macapagal-Arroyo was re-elected to a
full second term in May 10, 2004. She was President until June 30, 2010.

The Executive Issuances of President Macapagal-Arroyo began with Memorandum Circular No.
1 signed on January 30, 2001 and ended with Proclamation No. 2111 and Executive Order No. 910
which were both signed on June 29, 2010.

President MacapagaTArroyo’s documents were gathered from its official sources such as the
Official Gazette of the Philippines; Malacanang Records Office’s Book of Executive Issuances; SONA
Technical Report; A Compilation of Selected Presidential Speeches of Her Excellency President
Macapagal-Arroryo; Strong Republic: Selected Speeches of President Macapagal-Arroyo; and from the
website archive.org.

The American Psychological Association (APA) style was used for the citation. The titles that have
been provided by the researchers are enclosed in square brackets, considering that the exact wordings
and its order were not verbatim from the document being described. Book titles are italicized while
the speech titles are not. If in any case that the book title is the same as the title of the speech, it is
transcribed in italics because it is the book title.

CONTENTS

Introduction 9

Preface 1 1

Foreword 13

Research Notes 15

Executive Orders 23

• Executive Order Nos. 550-551 26

• Executive Order Nos. 552 - 553 30

• Executive Order Nos. 554 - 555 33

• Executive Order Nos. 556-557 37

• Executive Order Nos. 558 -559 40

• Executive Order Nos. 560 - 561 45

• Executive Order Nos. 562 - 563 50

• Executive Order Nos. 564 - 565-A 53

• Executive Order Nos. 566 - 567 61

• Executive Order Nos. 568 - 569 65

• Executive Order Nos. 570 - 571 69

• Executive Order Nos. 572 - 573 74

• Executive Order Nos. 574 - 575 78

• Executive Order Nos. 576 - 577 82

• Executive Order Nos. 578 - 579 86

• Executive Order Nos. 580 -581 91

• Executive Order Nos. 582 -583 95

• Executive Order Nos. 584 - 585-A 101

• Executive Order Nos. 586 - 587 107

• Executive Order Nos. 588 - 589 110

• Executive Order Nos. 590-591 117

• Executive Order Nos. 592 - 593 126

• Executive Order Nos. 594 -595 131

• Executive Order Nos. 596 -597 136

• Executive Order Nos. 598 -599 141

• Executive Order Nos. 600 - 601 144

• Executive Order Nos. 602 - 603 148

• Executive Order Nos. 604 - 605 152

• Executive Order Nos. 606 - 607 -K 157

• Executive Order Nos. 608 - 609 166

• Executive Order Nos. 610 - 611 171

• Executive Order Nos. 612 - 613 174

• Executive Order Nos. 614 - 615 181

• Executive Order Nos. 616-617 185

• Executive Order Nos. 618-619 190

• Executive Order Nos. 620 - 621 194

Executive Order Nos. 622

-623

201

Executive Order Nos. 624

- 625-A

205

Executive Order Nos. 626

-627

211

Executive Order Nos. 628

-629

215

Executive Order Nos. 630

-631

221

Executive Order Nos. 632

-633

226

Executive Order Nos. 634

-635

230

Executive Order Nos. 636

-637

236

Executive Order Nos. 638

-639

239

Executive Order Nos. 640

-641

243

Executive Order Nos. 642

-643

248

Executive Order Nos. 644

-645

254

Executive Order Nos. 646

-647

258

Executive Order Nos. 648

- 649-A

262

Executive Order Nos. 650

-651

267

Executive Order Nos. 652

-653

271

Executive Order Nos. 654

-655

279

Executive Order Nos. 656

-657

283

Executive Order Nos. 658

-659

286

Executive Order Nos. 660

- 661-A

292

Executive Order Nos. 662

- 663

298

Executive Order Nos. 664

-665

310

Executive Order Nos. 666

-667

314

Executive Order Nos. 668

-669

319

Executive Order Nos. 670

-671

322

Executive Order Nos. 672

-673

329

Executive Order Nos. 674

-675

333

Executive Order Nos. 676

-677

339

Executive Order Nos. 678

-679

343

Executive Order Nos. 680

-681-A

347

Executive Order Nos. 682

-683

355

Executive Order Nos. 684

-685

359

Executive Order Nos. 686

-687

363

Executive Order Nos. 688

-689

366

Executive Order Nos. 690

-691

371

Executive Order Nos. 692

-693

375

Executive Order Nos. 694

-695

377

Executive Order Nos. 696

-697

381

Executive Order Nos. 698

-699

383

Executive Order Nos. 700

- 701

386

Executive Order Nos. 702

-703

390

Executive Order Nos. 704

- 705-A

394

Executive Order Nos. 706

-707

399

Executive Order Nos. 708

-709

403

Executive Order Nos. 710

- 711

410

Executive Order Nos. 712

- 713

417

Executive Order Nos. 714 - 715 421

Executive Order Nos. 716-717 424

Executive Order Nos. 718-719 428

Executive Order Nos. 720 - 721-A 434

Executive Order Nos. 722 - 723 441

Executive Order Nos. 724 - 725 445

Executive Order Nos. 726 - 727 450

Executive Order Nos. 728 - 729 454

Executive Order Nos. 730 - 731 457

President Gloria Macapagal-Arroyo is all smiles as she picks fresh strawberry fruits together
with her granddaughters Mikaela (second from right) and Eva (left) during
her visit to a farm in Barangay Betag, La Trinidad, Benguet.

MESSAGES OF THE PRESIDENT

GLORIA MACAPAGAL-ARROYO

2001-2010

BOOK 14 I VOLUME 4

Executive Orders Part 4

President Gloria Macapagal-Arroyo’s Sixth State of the Nation Address delivered
on July 24, 2006 at Batasang Pambansa, Quezon City.

EXECUTIVE ORDERS

An Executive Order provides for rules of a general or permanent character in implementation or
execution of constitutional or statutory powers. The Executive Orders of President Gloria Macapagal-
Arroyo began on Eebruary 20, 2001 with Executive Order No. 1 and ended on June 29, 2010 with
Executive Order No. 910.

MESSAGES OE THE PRESIDENT

ARROYO I Volume 4

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 550

CREATING A PRESIDENTIAL TASK FORCE TO ADDRESS CONCERNS ARISING FROM
THE CONDUCT OF THE NATIONAL COUNCIL LICENSURE EXAMINATION
(NCLEX) FOR NURSES IN THE PHILIPPINES

WHEREAS, the National Council Licensure Examination (NCLEX) for nurses is administered
by the National Council of State Boards of Nursing (NCSBN) to determine those qualified to practice
nursing in the United States at the entry level;

WHEREAS, the NCSBN has authorized the conduct of the NCLEX in Hong Kong, London and
Seoul in 2004, and further established additional test centers in Australia, Canada, Germany, India,
Mexico and Taiwan in 2006;

WHEREAS, the Philippines is the top origin country of foreign educated nurses taking the NCLEX,
many of whom encounter financial hardship due to the cost of taking the examinations overseas;

WHEREAS, Filipino nurses constitute 83% of foreign-educated nurses practicing in the United
States of America and contribute positively to the good image of the Philippines through their hard
work, dedication and ethic of care;

WHEREAS, officers of the NCSBN visited the Philippines in March 2006 to assess the feasibility
of establishing an NCLEX test center in the country;

WHEREAS, the conduct of the NCLEX in the Philippines will open opportunities for qualified
yet less fortunate Filipino nurses to take the NCLEX locally, and the savings from not having to travel
abroad to take said exam may be devoted to test preparation;

WHEREAS, the Philippine government fully supports the establishment of an NCLEX test center
in the Philippines, and is prepared to provide assistance in terms of physical and examination security,
as well as intellectual property protection through its agencies.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, by
virtue of the powers vested in me by law, do hereby order the creation of a Presidential Task Force on
National Council Licensure Examination (NCLEX).

SECTION 1. Lead Agency. The Commission on Filipinos Overseas (CFO), through its Chairman,
shall be the lead agency in the NCLEX Task Force.

SEC. 2. Agency Support. The CFO shall be supported by the following agencies, represented by an
official with rank not below that of an Assistant Secretary, namely: Intellectual Property Office (IPO),
Philippine National Police (PNP), Professional Regulation Commission (PRC), and the Philippine
Nurses Association (PNA).

The CFO shall serve as the Secretariat of the Task Force.

SEC. 3. Functions and Responsibilities. The Task Force shall:

a. Prepare an overall program that would consolidate existing government mechanisms to ensure
protection of intellectual property rights and security of physical facilities of NCLEX test
centers in the Philippines;

OFFICIAL GAZETTE

ARROYO I Volume 4

b. Evaluate current procedures in resolving cases involving Filipino nurses and foreign
nursing regulatory entities, and recommend proper measures to enhance existing grievance
mechanisms;

c. Coordinate and liaise with the National Council of State Boards of Nursing (NCSBN) in
matters concerning the conduct of the NCLEX in the Philippines;

d. Investigate and take specific action on reports of fraud or any related act that will compromise
the integrity of the examinations, as referred by the NCSBN;

e. Conduct consultations and information campaigns among nursing associations and other
stakeholders to assist in preserving the integrity of local as well as foreign nursing licensure
examinations conducted in the Philippines; and

f. Perform other functions that will ensure the smooth and successful conduct of NCLEX in
the Philippines.

SEC. 4. Government Support. The Task Force is hereby authorized to call upon all other agencies
whose assistance and support may be deemed necessary for the effective performance of all these
functions, and said agencies are hereby directed to extend full cooperation thereto.

SEC. 5. Funding. The Task Force shall receive an initial funding of Ten Million Pesos
(PhP 10,000,000.00) which will be sourced from the President’s Social Fund in support of the projects,
programs and activities related to its functions.

SEC. 6. Period of Existence. The Task Force shall cease to exist after March 31, 2010 after
submitting a final report to the Office of the President of all its activities, including an accounting of all
moneys received and disbursed.

SEC. 7. Effectivity. This Executive Order shall take effect immediately.

Done, in the City of Manila, this SI®' day of JULY, in the year of our Lord, Two Thousand and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

MESSAGES OE THE PRESIDENT

ARROYO I Volume 4

MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 551
CREATING A TASK FORCE ON THE REPATRIATION OF
OVERSEAS FILIPINO WORKERS (OFWs) FROM LEBANON

WHEREAS, the continued conflict in Southern Lebanon has placed in danger the lives of our
Overseas Filipino Workers (OFWs) in Lebanon;

WHEREAS, while all preparations and evacuation plans are in place and have been going on
smoothly, there is need to intensify the coordination in preparation for a worse case scenario;

WHEREAS, there is need to enlist in this effort the assistance not only of government agencies,
but other foreign governments and international relief organizations as well;

NOW, THEREFORE, I, GLORIA MACAPAGAL ARROYO, President of the Philippines, by
virtue of the powers vested in me by the law, do hereby order:

SECTION 1. Task Force - There is hereby created a Task Force on the Repatriation of OFWs
from Lebanon (Task Force) composed of the following:

Chair

- Vice President of the Philippines

Vice Chair

- Secretary of Foreign Affairs

Co-Vice Chair

- Secretary of Labor and Employment

Members

- Executive Secretary

- Secretary of Health

- Secretary of Budget and Management

- Secretary of Social Welfare and Development

- Press Secretary

SECTION 2. Powers and Functions - The Task Force shall have, among others, the following
functions:

a) To coordinate the planning and implementation of plan of actions in the repatriation of OFWs
and other Filipino nationals caught in conflict affected areas brought about by the fighting in
Southern Lebanon;

b) To coordinate with other governments, through their embassies and other international
organizations like the Red Cross, Red Crescent, and the International Organization for
Migration and enlist whatever assistance that they may be able to provide in the effort to bring
our OFWs out of harms way.

c) To ensure that all possible resources such as airplanes, sea vessels, vehicles, including funds
are made available in a timely manner in order to effectively and efficiently undertake the
transport of our OFWs out of the conflict affected areas and back to the Philippines;

OFFICIAL GAZETTE

ARROYO I Volume 4

d) To involve the different diplomatic posts of the Philippines near the conflict affected area in the
effort to bring our OFWs out of harms way.

e) Through the Philippine Overseas Employment Administration (POEA), assist repatriated
OEWS by way of reprocessing them for possible re-deployment elsewhere;

f) Through the Department of Social Welfare and Development (DSWD) and the Department of
Elealth (DOH), assist arriving OEWs needing de-stress and medical attention.

SECTION 3. Support of Agencies - The Task Eorce may enlist the support of other agencies
such as the Philippine Overseas Employment Administration (POEA), Overseas Workers Welfare
Administration (OWWA), the Office of the Presidential Middle East Preparedness Committee, the
Office of the Special Envoy to the Gulf Cooperation Council, and the Commission on Eilipino Overseas.

SECTION 4. Secretariat - The Department of Eoreign Affairs and the Department of Labor &
Employment shall jointly provide technical and administrative support to the Task Eorce.

SECTION 5. Budget - There is hereby made available the amount of One Billion
(PI, 000,000,000) Pesos, Live Hundred Million (P500,000,000) coming from OWWA funds, and Live
Hundred Million coming from funds to be identified by the Department of Budget and Management,
that may be disbursed when needed for the repatriation of Eilipinos from Lebanon, subject to the usual
accounting and auditing rules and regulations.

SECTION 6. Repealing Clause - All executive issuances, rules and regulations or parts thereof
which are inconsistent with this Executive Order are hereby revoked, amended or modified accordingly.

SECTION 7. Effectivity — This Executive Order shall take effect immediately.

DONE in the City of Manila, this 26* day of July, in the year of Our Lord, Two Thousand
and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

MESSAGES OE THE PRESIDENT

ARROYO I Volume 4

MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 552

TRANSFER OF ADMINISTRATION AND RESPONSIBILITIES OVER THE MT. PINATUBO
LOWLAND COMMUNITIES FROM THE HOUSING AND URBAN DEVELOPMENT
COORDINATING COUNCIL (HUDCC) TO THE NATIONAL HOUSING AUTHORITY (NHA)

WHEREAS, by operation of law, specifically Republic Act No. 7637 and Proclamation No. 1201,
the Mt. Pinatubo Assistance, Resettlement and Development Commission, hereinafter referred to as
Mount Pinatubo Commission (MPC) has expired on 31 December 2000;

WHEREAS, under Executive Order No. 269 dated 19 July 2000 and Executive Order No. 4
dated 5 March 2001, provisions were made to facilitate the winding-up activities of the MPC with
the Department of Budget and Management (DBM) designated as lead agency of the Commission to
supervise the closure of MPC;

WHEREAS, Executive Order No. 6 issued on 20 March 2001 directed the transfer of resettlement
functions and responsibilities over the Mt. Pinatubo lowland communities to the HUDCC;

WHEREAS, under Executive Order No. 54 dated 7 November 2001, the assets, records, funds,
personnel, liabilities and responsibilities over the Mt. Pinatubo lowland communities were transferred
to the Pinatubo Project Management Office (PPMO) attached to the HUDCC;

WHEREAS, estate management activities including award of housing units and issuance of
titles to Mt. Pinatubo housing beneficiaries, and disposition of housing units to non-Pinatubo victims
occupying units in said lowland communities including the corresponding collection of housing
payments still need to be undertaken;

WHEREAS, estate management and collection fall within the mandated functions and powers of
the NHA;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Transfer of the Administration of the Mt. Pinatubo Lowland Communities to the
National Housing Authority (NHA). The administration and management of the Mt. Pinatubo lowland
communities and all other functions performed by the Pinatubo Project Management Office (PPMO)
under the HUDCC as provided under Executive Order No. 54 are hereby transferred to the NHA. The
HUDCC and NHA shall execute a Memorandum of Agreement to cover the transfer of functions and
turnover of all assets, liabilities and pertinent documents and records within thirty (30) days from the
effectivity of this Order.

SECTION 2. Institution of Mechanisms for Reforms. NHA shall institute a mechanism wherein
all the stakeholders concerned shall be consulted on the reforms to be instituted and provide the overall
strategic framework for the completion of Mt. Pinatubo related tasks.

SECTION 3. Collection Program. A Collection Program shall be implemented to generate
revenues from lots occupied by families not qualified as beneficiaries of the Mt. Pinatubo Lowland
Communities and from institutional and commercial lots in resettlement sites.

OFFICIAL GAZETTE

ARROYO I Volume 4

SECTION 4. Establishment of a Trust Fund. The NHA, as project administrator, shall establish
a Trust Eund for the Mt. Pinatubo lowland communities in accordance with existing rules and
regulations. The Trust Eund shall be maintained as a separate account from other corporate accounts.
All existing funds, funds released by the National Government as well as investments recovered and
income earned from the operations of the Mt. Pinatubo lowland communities shall be deposited in the
Trust Eund. Disbursements from the Trust Eund shall be utilized exclusively for the following purposes:

a. Completion of the remaining work in the resettlement sites including surveys and titling;

b. Project management and administration; and

c. Settlement of obligations.

SECTION 5. National Government Funding. The National Government shall make available
funds to the NEIA to cover obligations under the Mt. Pinatubo operations incurred prior to the
effectivity of the transfer of project administration to NHA.

SECTION 6. Effectivity. This Order shall take effect immediately.

Done in the City of Manila, this 1st day of August, in the year of the Lord, Two Thousand
and Six.

(Sgd.) GLORIA MACAPAGAL- ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501
Malacanang Records Office.

600J. Manila:

MESSAGES OE THE PRESIDENT

ARROYO I Volume 4

MALACANAN PALACE
MANILA

EXECUTIVE ORDER NO. 553

ESTABLISHING AN INFRASTRUCTURE MONITORING TASK FORCE

WHEREAS, there is a low absorptive capacity of the agencies implementing pump-priming
projects, especially the infrastructure projects;

NOW THEREFORE I, GLORIA M. ARROYO, President of the Philippines, by the powers vested
in me by law, do hereby order:

1. There is hereby established an Infrastructure Monitoring Task Force (Task Force) with the staff
from the following agencies assigned full-time to the Task Force: the National Economic and
Development Authority, the Presidential Management Staff (PMS), the Department of Public
Works and Highways, the Department of Transportation and Communication, the Department
of Energy and the Export Development Council.

2. The Philippine Chamber of Commerce and Industry is hereby invited to assign a representative
to the Task Force.

3. The Director-General of the PMS shall be the head of the Task Force.

4. The Task Force shall take steps to speed up the implementation of projects as appropriate.

5. All previous issuances inconsistent with this Executive Order are hereby repealed or modified
accordingly.

6. This Executive Order takes effect immediately.

DONE in the City of Manila, on this T' day of August, in the Year of Our Lord, Two Thousand
and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501
Malacanang Records Office.

600]. Manila:

OFFICIAL GAZETTE

ARROYO I Volume 4

MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 554

DIRECTING ALL DEPARTMENTS, BUREAUS, COMMISSIONS, AGENCIES, OFFICES AND
INSTRUMENTALITIES OF THE NATIONAL GOVERNMENT, INCLUDING GOVERNMENT-
OWNED AND/OR CONTROLLED CORPORATIONS, TO IMPROVE THE COMPETITIVENESS
OF THE COUNTRY’S EXPORT SECTOR BY ELIMINATING THE FEES AND CHARGES
IMPOSED ON EXPORT CLEARANCES, INSPECTIONS, PERMITS, CERTIFICATES,

AND OTHER DOCUMENTATION REQUIREMENTS

WHEREAS, the country’s fiscal condition calls for the creation and enhancement of opportunities
that will generate revenue and spur further economic growth;

WHEREAS, the country’s economic recovery program recognizes the role of exports in hastening
the attainment of economic goals;

WHEREAS, the sustained increase in exports which posted an average growth rate of 6.5%
between CYs 2001 and 2005 presents a strong potential for further economic growth;

WHEREAS, there is a need for concerted and collective effort between the government and the
private sector to improve the competitiveness of the country’s export sector;

WHEREAS, fees for inspection, commodity and export clearance, permits, certificates and
other documentary requirements of government commodity offices and related agencies, including
government-owned and/or controlled corporations, have been identified as among the factors that
lessen the competitiveness of Philippine exports;

WHEREAS, the abolition of administrative fees and charges imposed on export-related permits
and clearances from concerned government agencies and/or government corporations can facilitate
export initiatives by reducing the number of steps and the processing time and doing away with the
cost relative to such administrative and documentation requirements;

WHEREAS, such abolition involves only a negligible amount of revenues and will not adversely
impact on the delivery of basic services by the affected government agencies and/or corporations;

WHEREAS, the scrapping of fees does not completely mean the total abolition of export
commodity clearance requirements in keeping with international commitments and preservation of
national interest as embodied under EO 1016, s. 1985;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Departments, bureaus, commissions, agencies and offices in the Executive
Branch of the Government, including government-owned and/or controlled corporations and other
instrumentalities of the government are hereby directed to eliminate the fees imposed on export-related
permits and clearances except those imposed by specific laws;

SECTION 2. Departments, bureaus, commissions, agencies, offices and instrumentalities of
the national government, including government-owned and/or controlled corporations, are likewise
directed to submit to the Department of Trade and Industry (DTI), through the Export Development

MESSAGES OF THE PRESIDENT

ARROYO I Volume 4

Council (EDC), proposals on how export documentation procedures could be further streamlined to
improve efficiency in export documentation;

SECTION 3. The provisions of special or general laws to the contrary notwithstanding, all export
clearance requirements on Philippine commodity exports are hereby dispensed with, except only for
the following:

1. Those required as a result of the existence of import quotas in other countries, such as sugar;

2. Those covering items which are banned for exports;

3. Those covering exports of logs, copper and coffee; and

4. Those covered by international agreements to which the Philippines is a signatory.

SECTION 4. The Department of Trade and Industry, through the Export Development Council,
shall see to it that this Executive Order is effectively carried out;

SECTION 5. All executive and administrative orders/issuances, provisions of other laws, decrees,
rules, regulations or parts thereof which are inconsistent with any of the provisions of this Executive
Order are hereby repealed or modified accordingly;

SECTION 6. This Executive Order shall take effect immediately upon its publication in a
newspaper of general circulation.

Done in the City of Manila, this 3rd day of August, in the year of Our Lord, Two Thousand
and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

OFFICIAL GAZETTE

ARROYO I Volume 4

MALACANAN PALACE
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 555

AMENDING SECTIONS 5(c) AND 11 OF EXECUTIVE ORDER NO. 3, S-2001,
DEFINING THE POLICY AND ADMINISTRATIVE STRUCTURE FOR
GOVERNMENT’S COMPREHENSIVE PEACE EFFORTS

WHEREAS, Executive Order (EO) No. 3, s-2001, was issued on 28 February 2001 defining the
policy and administrative structure of the Government’s Comprehensive Peace Efforts;

WHEREAS, pursuant to Section 5(c), EO No. 3, s-2001, the Government Peace Negotiating
Panel for talks with the Moro Islamic Liberation Front (GPNP-MILF) was established to conduct
negotiations, dialogues, and face-to-face discussions with the MILE;

WHEREAS, there is a need to respond to emerging contingencies in the on-going peace talks with
the MILE by way of enabling the GPNP-MILF to integrate all existing activities and endeavors relating
to the peace negotiations, and wield direct and effective control over the joint mechanisms established
under the GRP-MILF peace process such as the Joint Coordinating Committees on the Cessation of
Hostilities (JCCCH), the Local Monitoring Teams (LMTs), the International Monitoring Team (IMT)
and the Ad Hoc Joint Action Group (AHJAG);

WHEREAS, there is equal need for the GPNP-MILF to provide the necessary support and
assistance to mechanisms and processes established under the Rehabilitation and Development
aspects of the GRP-MILF peace process such as the Bangsamoro Development Agency (BDA) and the
Bangsamoro Leadership and Management Institute (BLMI);

NOW, THEREFORE, I, GLORIA MACAPAGAL ARROYO, President of the Philippines, by
virtue of the powers vested in me by law, do hereby order:

Section 1. Section 5(c), EO No. 3, s-2001 is hereby amended to read as follows:

“c. GOVERNMENT PEACE NEGOTIATING PANELS. There shall be
established Government Peace Negotiating Panels (GPNPs) for negotiations with
different rebel groups, to be composed of a Chairperson and four (4) members
who shall be appointed by the President as her official emissaries to conduct
negotiations, dialogues, and face-to-face discussions with rebel groups.

The GPNPs shall each be provided technical support by a Panel Secretariat under
the direct control and supervision of the respective Panel Chairman. They shall be
authorized to hire consultants and to organize their own Technical Committees to
assist in the technical requirements for the negotiations.

Furthermore, with respect specifically for talks with the Moro Islamic Liberation
Front (MILE), the GPNP shall have the authority to establish such bodies
and structures, including finance and administrative support units, to attain
its mandate.

MESSAGES OF THE PRESIDENT

ARROYO I Volume 4

Upon conclusion of a final peace agreement with any of the rebel groups, the
concerned GPNP shall be dissolved. Its Panel Secretariat shall be retained in the
Office of the Presidential Adviser on the Peace Process (OPAPP) for the purpose
of providing support for the monitoring of the implementation of the peace
agreement.”

Sec. 2. Section 11, EO No. 3, s-2001 is hereby amended as follows:

“Section 11. Funding. The approved budget of the OPAPP, the National
Program for Unification and Development Council and the National Peace Forum
for the current year shall be the source of funds for the implementation of the
comprehensive peace process for the year 2001. Appropriations for succeeding
years shall be incorporated in the budget of the OPAPP and other agencies
concerned.

The funds to cover the Miscellaneous and Other Operating Expenses
(MOOE) of the talks with MIFF shall be sourced from the Office of the President
and released directly to the GPNP-MIFF Chairman. However, the funds to cover
the Personnel Services (PS) of the GPNP-MIFF and its Secretariat shall continue
to be drawn from the approved PS budget of OPAPP.”

Sec. 3. All executive orders, rules and regulations, and other issuances, or parts thereof, which are
inconsistent with this Order are hereby repealed and modified accordingly.

Sec. 4. This Executive Order shall take effect immediately.

Done in the City of Manila, this 3rd day of August, in the year of our Ford, Two Thousand
and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

OFFICIAL GAZETTE

ARROYO I Volume 4

MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 556

AMENDING EXECUTIVE ORDER NO. 473 AND REQUIRING THE EXPLORATION,
DEVELOPMENT AND PRODUCTION OF CRUDE OIL FROM THE CAMAGO-MALAMPAYA
RESERVOIR TO BE UNDERTAKEN THROUGH BIDDING

WHEREAS, Executive Order No. 473 tasked the Department of Energy (DOE) to pursue the
immediate exploration, development and production of crude oil from the Camago-Malampaya
Reservoir;

WHEREAS, transparency is a government policy;

WHEREAS, it is government policy to bid out projects unless only one qualified bidder emerges
from a published invitation to bid;

NOW, THEREFORE, I, GLORIA M. ARROYO, President of the Republic of the Philippines, by
virtue of the powers vested in me by law, do hereby order:

Section 1. There shall be no “farm-in” or “farm-out” contracts awarded by any government
agency, including the Philippine National Oil Company (PNOC), including the contract for the
exploration, development and production of crude oil from the Camago-Malampaya Reservoir.

Section 2. All government agencies, including the PNOC, shall follow a strict bidding procedure
in forging partnership with interested parties, including the Camago-Malampaya Reservoir venture.

Section 3. The corporate identity and of any partner tapped by any government agency, including
the PNOC, must be beyond question.

Section 4. The paid-up capital of any partner tapped by any government agency, including the
PNOC, must clearly show financial capability to undertake the subject venture;

Section 5. No government agency, including the PNOC, may enter into a contract with a company
registered in a jurisdiction know to be a haven for money laundering;

Section 6. All government agencies, including the PNOC, may award a contract, including the
Camago-Malampaya Reservoir venture, only to a true principal group and not to a trader/broker.

Section 7. Any and all negotiations or arrangements entered into by any government agency,
including the PNOC, which violate this Executive Order, shall be immediately discontinued or
cancelled.

Section 8. All other executive issuances, rules and regulations or parts thereof, including Executive
Order No. 473, which are inconsistent with the provision of this Executive Order are hereby repealed,
amended or modified accordingly.

Section 9. This Executive Order shall take effect immediately following its publication in the
Official Gazette or in a newspaper of general circulation.

MESSAGES OF THE PRESIDENT

ARROYO I Volume 4

Done in the City of Manila, this 17* day of June, in the year of Our Lord, Two Thousand and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

OFFICIAL GAZETTE

ARROYO I Volume 4

MALACANAN PALACE
MANILA

EXECUTIVE ORDER NO. 557
ESTABLISHING AN ANTI-RED TAPE TASK FORCE

WHEREAS, one of the strategic measures for global competitiveness in the Medium Term
Philippine Development Plan is to reduce red tape in all government agencies to reduce transaction costs;

NOW THEREFORE I, GLORIA M. ARROYO, President of the Philippines, by the power vested
in me by the Constitution and the laws of the Philippines, do hereby order:

1. There is hereby established an Anti-Red Tape Task Force (“Task Force”) with full-time
members from the Presidential Management Staff, the Commission on Information and
Communications Technology, the Department of Trade and Industry, the Export Development
Council Secretariat, and the National Anti-Poverty Commission as members. The Philippine
Chamber of Commerce and Industry shall likewise be invited to be send a representative who
shall participate full-time in the activities of the Task Force.

2. The Secretary of Trade and Industry shall be the Chairman of the Task Force. There shall be a
full-time operations officer coming from the Export Development Council Secretariat.

3. The Task Force shall handle the Anti-Red Tape Module of the forthcoming National
Competitiveness Summit and shall be incorporated into the National Competitiveness Council
to be established in the said Summit.

4. All executive issuances inconsistent with this Executive Order are hereby repealed or modified
accordingly.

5. This Executive Order takes effect immediately.

DONE in the City of Manila, on the 8* day of August, in the year of Our Lord, Two Thousand
and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501
Malacanang Records Office.

- 600]. Manila:

MESSAGES OE THE PRESIDENT

ARROYO I Volume 4

MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 558

REPEALING EXECUTIVE ORDER NO. 138 DATED AUGUST 10, 1999,

ENTITLED “DIRECTING GOVERNMENT ENTITIES INVOLVED IN THE
IMPLEMENTATION OF CREDIT PROGRAMS TO ADOPT THE CREDIT POLICY
GUIDELINES FORMULATED BY THE NATIONAL CREDIT COUNCIL”

I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the Philippines, by virtue of
the powers vested in me by law, do hereby order:

SECTION 1. Repeal of Executive Order No. 138, series of 1999. - Executive Order No. 138
dated August 10, 1999 is hereby repealed.

SECTION 2. Effectivity. - This Executive Order shall take effect immediately upon publication in
a national newspaper of general circulation.

Done in the City of Manila, this 8th day of August, in the year of Our Lord, Two Thousand
and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacahang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501 - 600]. Manila:
Malacahang Records Office.

OFFICIAL GAZETTE

ARROYO I Volume 4

MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 558-A

CLARIFYING THE OVERALL FRAMEWORK IN THE IMPLEMENTATION OF GOVERNMENT
CREDIT PROGRAMS AS CONTEMPLATED UNDER E.O. 558 DATED 8 AUGUST 2006

I, GLORIA MACAPAGAL-ARROYO, by virtue of the powers vested in me by law do
hereby order:

Section 1. With reference to Executive Order No. 558 dated 8 August 2006 repealing Executive
Order No. 138, dated August 10, 1999, the following directives clarifying the overall framework in the
implementation of government credit programs are hereby promulgated:

1. Credit programs to be implemented under the auspices of EO 558 shall support the poverty
alleviation thrusts of the government and shall focus only on the municipalities and barangays
currently identified by the People’s Credit and Finance Corporation (PCFC) as areas where
there are no identified and available participating financial institutions (PFIs) such as banks,
cooperatives and non-governmental organizations that serve the needs of the poor and the
marginalized sectors of the economy (to be subsequently referred to as “unserved areas”).

2. The Department of Social Welfare and Development (DSWD) shall immediately implement
and provide the necessary credit assistance and other support services in the unserved areas:

a. The livelihood support program to be provided by DSWD shall include social preparation
and capacity building activities such as business development services to assist the targeted
clientele to access financial assistance from PFIs at the soonest possible time.

b. The DSWD shall provide livelihood credits based on interest rates comparable to those
charged by Quedancor.

c. The DSWD shall endeavor to simplify loan documentation and processes to ensure fast and
timely approval of proposals and disbursement of proceeds.

d. In complementing the livelihood support program of DSWD, the PCFC shall continuously
exert all efforts in identifying and providing support to potential PFIs that will express
interest and are willing to operate and provide the necessary financial services in the
unserved areas.

e. The PCFC shall monitor DSWD’s livelihood support program and shall submit periodic
reports to the National Anti-Poverty Commission.

3. All other credit programs by government non-financial agencies (GNFAs) and government
owned and controlled corporations (GOCCs) shall require specific approval by the President
of the Philippines.

4. GNFAs and GOCCs are directed to continuously provide proactive support and technical
assistance to enable micro and small enterprises to become viable and sustainable.

MESSAGES OF THE PRESIDENT

ARROYO I Volume 4

Section 2. All orders, rules, regulations and issuances as parts thereof inconsistent with this
Executive Order are hereby repealed, or modified accordingly.

Section 3. This Executive Order shall take effect upon its publication in a national newspaper of
general circulation.

Done in the City of Manila, this 27th day of October, in the year of our Lord, Two Thousand
and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

OFFICIAL GAZETTE

ARROYO I Volume 4

MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 559
CREATING THE METRO ILOILO -GUIMARAS ECONOMIC
DEVELOPMENT COUNCIL (MIGEDC)

WHEREAS, Section 14, Article X of the Philippine Constitution provides that “the President
shall provide for regional development councils or other similar bodies composed of local government
officials, regional heads of departments, and other government offices, and representatives from non-
governmental organizations within the regions for purposes of administrative decentralization to
strengthen the autonomy of the units therein and to accelerate the economic and social growth and
development of the units in the region”;

WHEREAS, Section 33, Article 3, Chapter 3 of the Local Government Code provides that “local
government units may through appropriate ordinances, group themselves, consolidate, or coordinate
their efforts, services, and resources for purposes commonly beneficial to them”;

WHEREAS, the Metropolitan Iloilo Development Council (MIDC) was created through a
Memorandum of Agreement (MOA) dated 9 February 2001 by the City of Iloilo, based on voluntary,
consensus-based and collaborative approaches in integrated area development that is focused on six
areas of collaboration, namely: Basic Services Delivery, Environmental Management, Public Safety
and Security, Land Use Management, Infrastructure Development, and Economic Promotion and
Development;

WHEREAS, the Guimaras-Iloilo City Alliance (GICA) was also similarly created through a
Memorandum of Agreement (MOA) entered into by Iloilo City and the Province of Guimaras on
22 May 2005 to effect mutually beneficial economic development with special focus on tourism and
infrastructure development with special focus on road and port systems improvement;

WHEREAS, the Municipality of Santa Barbara, which hosts the new Iloilo Airport of
international standards, has similarly recognized the importance of inter-modal transportation links
and tourism development to overall economic development;

WHEREAS, the Local Government Units involved recognize the need to collaborate on certain
specific areas in order to speed-up the economic and tourism development of the area;

WHEREAS, the National Government has recently unveiled during the 6* State of the Nation
Address of President Gloria Macapagal Arroyo, a massive investment program to sustain economic
growth, speed progress to all areas of the country through the Mega-Region Economic Development
Strategy and propel the Philippines to the “First World” status and through such development strategy,
make funds available through the Medium-Term Public Investment Program (MTPIP);

WHEREAS, for Central Philippines, where Western Visayas belongs, tourism has been identified
as an inherent competitive edge and priority area for investments;

WHEREAS, the success of the Mega-Region Economic Development Strategy will depend highly
on the effectiveness of the inter-local government cooperation that are already existing and functioning
within the regions which can support the developmental thrusts of the National Government;

MESSAGES OE THE PRESIDENT

ARROYO I Volume 4

WHEREAS, as existing and functional regional work alliances, the MIDC and GICA may be
further merged and expanded to help realize the goals and objectives of the Mega-Region Economic
Development Strategy through economies of scale.

NOW, THEREEORE, I, GLORIA ARROYO, President of the Philippines, by virtue of the powers
vested in me by law, do hereby order:

SECTION 1. The Metro Iloilo-Guimaras Economic Development Council (MIGEDC),
hereinafter referred to as the Council, is hereby created. The Council shall formulate, coordinate and
monitor programs, projects and activities for the acceleration of the economic growth and development
of the City of Iloilo, the Municipalities of Oton, San Miguel, Pavia, Leganes, and Sta. Barbara, all of
the Province of Iloilo, and the entire Province of Guimaras, in support to the Mega-Region Economic
Development Strategy of the National Government.

SECTION 2. The Council shall be composed of the following:

a. Mayor, Iloilo City as Chairperson

b. Provincial Governor, Province of Guimaras as Co-Chairperson

c. Mayor, Municipality of Pavia, Iloilo

d. Mayor, Municipality of San Miguel, Iloilo

e. Mayor, Municipality of Oton, Iloilo

f. Mayor, Municipality of Leganes, Iloilo

g. Mayor, Municipality of Sta. Barbara, Iloilo

h. President, League of Municipalities, Province of Guimaras

SECTION 3. In the discharge of its functions, the Council shall ensure appropriate coordination
with the Regional Development Council (RDC) VI and other relevant local development councils.

SECTION 4. All departments, bureaus, offices, agencies and instrumentalities of the national
government, including government-owned or controlled corporations and government financial
institutions, are hereby directed to extend their full assistance to the Council in support of its programs,
projects and activities.

SECTION 5. All executive orders, rules, regulations and other issuances or parts thereof which are
inconsistent with the provisions of this Executive Order are hereby repealed or modified accordingly.

SECTION 6. This Executive Order shall take effect immediately.

DONE in the City of Manila, this 28th day of August, in the year of our Lord, Two Thousand
and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

OFFICIAL GAZETTE

ARROYO I Volume 4

MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 560

REACTIVATING THE SOUTHERN PHILIPPINES DEVELOPMENT AUTHORITY

WHEREAS, the Southern Philippines Development Authority (SPDA) was created pursuant to
Presidential Decree No. 690, as amended by Presidential Decree No. 1703;

WHEREAS, SPDA, an agency attached to the Office of the President, was deactivated by virtue of
Executive Order No. 149 dated 18 November 2002;

WHEREAS, it is the policy of the present Administration to foster and accelerate the balanced
growth of the Southern Philippines for national economic, social and political stability; and

WHEREAS, under Section 77 of Republic Act No. 9336, also known as the “General
Appropriations Act of 2005”, the President may direct changes in the organization and key positions
in any department, bureau or agency.

NOW, THEREEORE, I, GLORIA MACAPAGAL ARROYO, President of the Philippines, by
virtue of the powers vested in me by law, do hereby order:

SECTION 1. Reactivation of SPDA . — The SPDA is hereby reactivated effective immediately. It
shall have a lean and professional organization, and shall be under the oversight of the Office of the
Presidential Adviser on the Peace Process (OPAPP).

SECTION 2. Functions of the Board . — The Board shall have, among others, the following
functions:

a. Approve policies and implementing guidelines needed to accomplish the purpose and objectives
of SPDA;

b. Determine and approve the organizational structure, staffing pattern and pay scales of SPDA,
its officers and employees subject to existing rules and regulations;

c. Review and approve annual work and financial plan and budget of SPDA;

d. Establish levels of authority and responsibilities of the Administrator and other officers
of SPDA;

e. Submit an annual report to the President;

f. Perform other tasks as may be assigned by the President.

The Chairman shall preside at the meetings of the Board. Except for the Administrator, who is ex-
officio Vice-Chairman of the Board, no member of the Board shall perform day-to-day administrative
or operations work.

SECTION 3. Catch-Up Plan . — SPDA shall be the implementing arm for the economic catch-up
plan on the implementation of the 1996 GRP-MNLF Peace Agreement.

SECTION 4. Coordination with ARMM . — SPDA shall properly coordinate with the
Autonomous Regional Government (ARG) in the implementation of projects within the Autonomous
Region in Muslim Mindanao (ARMM).

MESSAGES OF THE PRESIDENT

ARROYO I Volume 4

SECTION 5. Funds and Assets . — Section 6 of Executive Order No. 229 dated 21 July 2003
is hereby repealed. The SPDA shall coordinate with the head of Special Order No. 1391 dated
3 August 2004 for the return to SPDA of its assets and funds.

SECTION 6. Support of Other Agencies. - SPDA may request assistance from such other agencies
as may be necessary, including, the Commission on Audit (COA) and the Civil Service Commission
(CSC), to assist in the implementation of this Executive Order.

SECTION 7. Budget . — The amount of Ten Million Pesos (PIOM), to be taken from the
President’s Contingency Fund, is hereby made available for the reactivation of SPDA. Subsequent
budget shall be included in the General Appropriations Act.

SECTION 8. Repealing Clause. — All executive orders, rules, regulations and other issuances or
parts thereof which are inconsistent with the provisions of this Executive Order are hereby repealed or
modified accordingly.

SECTION 9. Effectivity. - This Executive Order shall take effect immediately upon its publication
in a national newspaper of general circulation.

DONE in the City of Manila, this 29th day of August, in the year of our Lord, Two Thousand
and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

OFFICIAL GAZETTE

ARROYO I Volume 4

MALACANAN PALACE
MANILA

EXECUTIVE ORDER NO. 561

FORMATION OF THE “SUPER” REGIONS AND MANDATE OF THE
SUPERREGIONAL DEVELOPMENT CHAMPIONS

WHEREAS, for the first time in almost a decade the Philippine national budget is under control,
the Philippine Government is lowering its deficit and raising unprecedented amounts of revenue;

WHEREAS, the Medium Term Philippine Development Plan commits to presenting a balanced
budget by 2010;

WHEREAS, the Philippine government’s economic managers commit to presenting the balanced
budget by 2008;

WHEREAS, the infrastructure initiatives in the Medium Term Public Investment Program
(MTPIP) will cost over One Trillion Pesos (PI, 000, 000, 000, 000);

WHEREAS, the investment program under the MTPIP will be funded by Government revenues
generated by tax reforms, government-owned and controlled corporations and government financial
institutions, as well as partnerships and other support from private sector and Philippines’ bilateral and
multilateral partners;

WHEREAS, the MTPIP forms part of the Government’s second phase of economic reforms under
which it is investing in better infrastructure and services to create jobs and improve living standards;

WHEREAS, the most sweeping element of said phase is to restructure the Philippine economy into
“super” regions to bolster the natural advantages of five distinct subeconomies regions of the country;

WHEREAS, said “super” regions need to be built up to create opportunity across the country;

NOW, THEREFORE, I, GLORIA M. ARROYO, President of the Philippines, by virtue of the
powers vested in me by law, do hereby order:

SECTION 1. The geographical units shall be grouped into the following “super” regions:

a) Northern Luzon Agribusiness Quadrangle, to be composed of Regions I, II, Cordillera
Administrative Region (CAR), and the northern part of the provinces of Aurora (north of
Baler), Tarlac (north of Tarlac City), Nueva Ecija (north of Cabanatuan City), and Zambales
(north of Subic);

b) Luzon Urban Beltway, to be composed of the National Capital Region (NCR), Region IV-A,
the provinces of Bulacan, Bataan, Pampanga, Mindoro, Marinduque, and the southern parts of
the provinces of Tarlac, Zambales, Aurora and Nueva Ecija;

c) Central Philippines, to be composed of Regions V, VI, VII, and VIII, and the provinces of
Romblon, Palawan, and Camiguin, and the Island of Siargao;

d) Agribusiness Mindanao, to be composed of Regions IX, X except Camigiun, XI, XII, Caraga
except Siargao, and the Autonomous Region of Muslim Mindanao; and

e) Cyber Corridor, which traverses the above “super” regions from Baguio to Cebu to Davao.

The above-mentioned groupings neither supersede current political boundaries nor alter the
regional development councils as established by existing laws and issuances.

MESSAGES OF THE PRESIDENT

ARROYO I Volume 4

SECTION 2. The “super” regions shall have the following primary, though not exclusive,
development themes:

a) Northern Luzon Agribusiness Quadrangle - Agribusiness

b) Luzon Urban Beltway - Globally competitive industrial and service center

c) Central Philippines - Tourism

d) Agribusiness Mindanao - Agribusiness

e) Cyber Corridor - Information and communication technology and knowledge economy.

SECTION 3. Each “super” region shall have a designated Development Champion whose
mandate is to:

a) Serve as catalyst for development and prime advocate of the strategic development theme in
his area;

b) Ensure the implementation of the priority programs and projects identified in the 2006 State
of the Nation Address and the undated MTPIP, in close collaboration with the concerned local
government units, national agencies and other partners in development, and undertake the
necessary interventions to help ensure that these are completed on time and at a lowest cost
to government;

c) Work out operational policies and remedial actions to ensure that the priority programs and
projects are completed on schedule and a lowest cost to government;

d) Submit a monthly report to the Presidential Management Staff (PMS) on the overall
accomplishments of project implementation, issues and problems identified, and recommend
solutions pursuant to Item (c) above.

SECTION 4. The Development Management Champions are hereby authorized to call on the
National Economic and Development Authority, the Department of Budget and Management, the PMS
and the Infrastructure Monitoring Task Force for any assistance in the performance of their mandate,
including any information or data requirement. They may also call on any other government agency,
including government owned or controlled corporations, and government financial institutions, for
assistance as they may deem necessary to ensure the timely and cost-effective implementation of the
priority projects.

All Regional Development Councils shall assist the Development Champions in the performance
of their duties and responsibilities.

The Office of the Press Secretary, Philippine Information Agency and Government mass media
shall provide the necessary assistance in communicating the development endeavors in the “super”
regions to key constituencies and the international community.

SECTION 5. The Development Champions are the following:

a) North Luzon Agribusiness Quadrangle - PMS Director-General Arthur Yap;

b) Luzon Urban Beltway - Subic-Clark Alliance for Development Chairman Edgardo Pamintuan;

c) Central Philippines - Secretary of Tourism Joseph Ace Durano; Secretary Cerge Remonde shall
be the Cabinet Officer for Regional Development of region VII;

d) Agribusiness Mindanao - Presidential Adviser for the Peace Process Jesus Dureza;

e) Cyber Corridor - Commission on Information and Communication Technology Chairman
Ramon Sales.

OFFICIAL GAZETTE

ARROYO I Volume 4

SECTION 6. The operational requirements of the Development Champions shall be supported
by the budget of the agencies that they head.

SECTION 7. This Executive Order takes effect immediately.

DONE in the City of Manila, this 19th day of August, in the year of Our Lord, Two Thousand
and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501 - 600J. Manila:
Malacanang Records Office.

MESSAGES OE THE PRESIDENT

ARROYO I Volume 4

MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 562

REINSTATING THE DEPARTMENT OF AGRARIAN REFORM, DEPARTMENT OF
THE INTERIOR AND LOCAL GOVERNMENT AND DEPARTMENT OF HEALTH AS
MEMBERS OF THE REGIONAL DEVELOPMENT COUNCIL

WHEREAS, Executive Order No. 325, s. 1996, Reorganization of the Regional Development
Councils (RDC), provides that Regional Directors of agencies represented in the NEDA Board shall be
regular members of the RDC;

WHEREAS, Administrative Order 148, s. 2006, provides for the reconstitution of the NEDA
Board which excluded the Department of Agrarian Reform (DAR), Department of the Interior and
Local Government (DILG) and Department of Health (DOH);

WHEREAS, the membership of DAR, DILG and DOH are critical in the pursuit of socio-
economic development across the regions and hence, they should remain members of the RDC;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, by
virtue of the powers vested in me by law, do hereby order:

SECTION 1. The Regional Directors of DAR, DOH and DILG shall remain members of
the RDC.

SECTION 2. All previous issuances inconsistent with the provisions of this Executive Order are
hereby repealed or modified accordingly.

SECTION 3. This Executive Order shall take effect immediately.

DONE in the City of Manila, this 28th of August, in the year of Our Lord, Two Thousand
and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

OFFICIAL GAZETTE

ARROYO I Volume 4

MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 563

AMENDING SECTION 2 AND REPEALING SECTION 4 OF EXECUTIVE ORDER NO. 230
S. 2000 AUTHORIZING THE ESTABLISHMENT AND MAINTENANCE OF A
“SUPER GREEN LANE FACILITY” AT THE BUREAU OF CUSTOMS

WHEREAS, Executive Order No. 230 dated 31 March 2000 authorized the establishment and
maintenance of a “Super Green Lane (SGL) Facility” at the Bureau of Customs;

WHEREAS, Section 4 of Executive Order No. 230 provides that the Secretary of Finance and the
Commissioner of Customs shall issue rules and regulations to effectively implement this Order;

WHEREAS, it is necessary to immediately implement the “Super Green Lane Facility” at the
Bureau of Customs.

NOW, THEREFORE I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Section 2 of Executive Order No. 230 dated 31 March 2000 is hereby amended to
read as follows:

“SECTION 2. Trust Fund Creation. - A Super Green Lane Trust Fund
is hereby created and established which shall be sourced from the service fee
charged for every shipment of qualified importers utilizing the Super Green Lane
Facility. A Permanent Committee created under Section 45, Chapter 5, Book VI of
Executive Order No. 292, otherwise known as the Administrative Code of 1987,
shall monitor and evaluate the activities of the balances of the Trust Fund.”

SECTION 2. Section 4 of Executive Order No. 230 dated 31 March 2000 is hereby repealed.

SECTION 3. Failure to follow the directives in Executive Order No. 230, as herein amended,
within thirty (30) days from effectivity of this Order shall subject concerned officials to administrative
sanctions pursuant to existing laws, rules and regulations.

SECTION 4. This Executive Order shall take effect immediately upon publication in a newspaper
of general circulation.

MESSAGES OF THE PRESIDENT

ARROYO I Volume 4

DONE in the City of Manila, this 26th day of September, in the year of Our Lord, Two Thousand
and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

OFFICIAL GAZETTE

ARROYO I Volume 4

MALACANANG

MANILA

EXECUTIVE ORDER NO. 564

RESTRUCTURING THE INFRASTRUCTURE MONITORING SYSTEM

WHEREAS, Executive Order (E.O.) 376 s. 1989 signed by former President Corazon C. Aquino,
as amended by E.O. 93 s 1993 signed by President Fidel V. Ramos, established the Regional Project
Monitoring and Evaluation System (RPMES) to expedite project implementation;

WHEREAS, E.O. 553 s. 2006 established an Infrastructure Monitoring Task Force headed by
the Director-General of the Presidential Management Staff with assigned personnel from the National
Economic and Development Authority, Department of Public Works and Highways, Department of
Transportation and Communications, Department of Energy and the Export Development Council.
The Task Force invited a representative from the Philippine Chamber of Commerce and Industry.

WHEREAS, The President’s State of the Nation Address (SONA) 2006 stressed the importance of
infrastructure;

WHEREAS, after a diligent review of E.O. 376, 93 and 553, there is a need to rationalize the
RPMES and the Infrastructure Monitoring Task Force;

WHEREAS, the Presidential Management Staff (PMS) is not involved in project approval and
implementation and can independently monitor and provide timely and pro-active information on
needed actions to ensure accomplishment of the Medium Term Public Investment Program (MTPIP)
2006-2010, especially the SONA commitments, within the purview of good governance and
transparency;

NOW, THEREFORE I, GLORIA M. ARROYO, President of the Philippines, by virtue of the
powers vested in me by the Constitution, do hereby order the restructuring of the RPMES into the
Infrastructure Monitoring Task Force Projects Performance Tracking System (Pro-Performance System)
of the PMS.

Section 1. Goals and Objectives. The “Pro-Performance System” shall have as its goal to accelerate
the delivery of the MTPIP 2006-2010, especially the SONA commitments. More specifically, the “Pro-
Performance System” shall achieve the following objectives under the three-dimensional core elements
and indicators (physical development performance and quality, financial performance, timeliness):

a) To provide independent and up-to-date constructive information on the overall status of
project implementation based on the three-dimensional core elements and indicators, and
identify areas, issues and concerns that need solutions/interventions by Lead Implementing
Agencies and/or Project Management Offices.

b) To reinforce public-private partnership and collaboration in monitoring said government
projects.

c) To supplement current government monitoring efforts at all levels for more synergistic
independent findings.

d) To ensure public awareness and participation through information campaigns and advocacy
programs; likewise to provide government access to reliable information from the private
sector for constructive decision-making.

MESSAGES OF THE PRESIDENT

ARROYO I Volume 4

Section 2. Scope and Coverage. The Pro-Performance System shall monitor the MTPIP
2006-2010, especially SONA commitments, major infrastructure projects, health and education
programs and other projects that the President may identify. These projects may be funded from
the national government, external fund sources, the government-owned or controlled corporations,
the government financial institutions, and/or the private sector through Build-Operate-Transfer or
its variants.

Section 3. Organizational Structure. The Pro-Performance System shall be lodged with the PMS,
which shall serve as the Secretariat of the Infrastructure Monitoring Task Force.

The Philippine Chamber of Commerce and Industry and a representative of the intelligence
community shall be invited by the President to advice the Infrastructure Monitoring Task Force and
the PMS.

Section 4. Funding. Funds needed shall be made available by the Department of Budget and
Management (DBM) from the 5% contingency fund or 1% of the total project cost of the monitored
projects.

Section 5. Separability Clause. All orders, issuances, rules and regulations or parts thereof
inconsistent with this E.O., including E.O. 376 s. 1989 and E.O. 93 s. 1993, are hereby revoked or
modified accordingly.

Section 6. Effectivity. This E.O. shall take effect immediately.

28 August 2006

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

OFFICIAL GAZETTE

ARROYO I Volume 4

MALACANAN PALACE
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 564-A

AMENDING CERTAIN PROVISIONS OF EXECUTIVE ORDER 564 AND REDEFINING THE
MECHANISMS TO INSTITUTIONALIZE THE “PRESIDENT’S PRO-PERFORMANCE SYSTEM”

WHEREAS, Executive Order (EO) No. 564 s. 2006, entitled “Restructuring the Infrastructure
Monitoring System” was issued by the President to restructure the Regional Project Monitoring and
Evaluation System in the Infrastructure Monitoring Task Force Projects Performance Tracking System
(Pro-Performance System) of the Presidential Management Staff;

WHEREAS, it is necessary to institutionalized the “President’s Pro-Performance System” in order
to ensure the diligent delivery and fast-tracking of the government’s projects, in measurable terms with
transparency and thorough documentation, especially those identified under the President’s 2006 State
of the Nation Commitments;

WHEREAS, there is vital necessity to ensure delivery of government’s programs and projects with
transparency especially foreign-assisted projects;

NOW, THEREFORE, I, GLORIA M. ARROYO, President of the Philippines, by virtue of the
powers vested in my by the Constitution, do hereby order the amendment of Executive Order 564
to redefine the organizational, operational and administrative mechanisms under the Infrastructure
Monitoring Task Force Projects Performance Tracking System (Pro-Performance), without prejudice to
maintaining its goals, objectives, scope and coverage.

Section 1. Implementing Structure - The Infrastructure Monitoring Task Force Performance
Tracking System shall simply be called the Pro-Performance Tracking System. A Pro-Performance
Team shall be created to implement this Pro-Performance System. The Pro-Performance team shall be
composed of a Steering Committee, Independent Support Groups, a Pro-Performance Coordination
Office, to be supported by the reorganized monitoring units of the Presidential Management Staff
(PMS) and designated monitors of the Office of the President and line agencies.

1.1. Steering Committee. A Steering Committee composed of relevant officials, heads of agencies
and private sector and civil society representatives hall be established for a transparent
implementation of the President’s Pro-Performance System with the following membership:

Chairperson - Private sector representative
Vice-Chairperson - Director General, PMS

Members:

Representative, Non-Government Organization
Representative, Business and Youth Sectors
Representative, Media
Representative, Church/Religious Sector

Representative, International Development Organization (of Filipino descent)

MESSAGES OF THE PRESIDENT

ARROYO I Volume 4

1.2. Independent Groups. Independent bodies such as the Procurement Transparency Group of
the Government Procurement Policy Board and advocacy groups shall assist the Steering
Committee.

1.3. Secretariat. The monitoring units of the PMS shall be reorganized as the Pro-Performance
Coordination Office, which shall act as the Secretariat of the Pro-Performance system to
coordinate its implementation.

1.4. Support Monitors. The monitoring support for the Pro-Performance Team shall be extended
by the monitoring units of the Office of the President, the Cabinet Secretary, the National
Economic and Development Authority, the Super-Region Champions and other relevant
line agencies.

1.5. Concerned Agencies and Super Region Champions. Regular project monitoring and
evaluation shall be undertaken by the concerned government agencies and instrumentalities
in coordination with the respective Super Region Development Champions.

Section 2. Monitoring Systems Integration - The Regional Project Monitoring and Evaluation
System and the Overseas Development Assistance Monitoring System shall be consolidated and
integrated to form the Presidents’ Pro-Performance Tracking System. As such, the National Computer
Center shall assess, evaluate, redesign and establish the Information Strategic Systems Plan for the Pro-
Performance Tracking System within two (2) months from the effectivity of this Order. Moreover, the
system must be ISO-compliant within one (1) year upon data initialization.

Section 3. Operations Manual - The Secretariat shall prepare the Pro-Performance System
Operations Manual within 30 days from the effectivity of this Order. The same shall be approved by
the Steering Committee.

Section 4. Reports - The Secretariat through the Steering Committee shall submit monthly
progress reports with photo-documentation to the Office of the President and reports required by the
President from time to time.

Section 5. Funding and Equipment - Initial operations budget One Million Pesos shall be
made available by the Department of Budget and Management (DBM). Eor the continuous office
operation, the DBM shall establish a Trust Eund out of the one percent (1%) of total project cost of
the monitored projects to be sourced from the contingency fund component. The proceeds shall defray
operational and administrative expenses, including out-source of information and communication
technology equipment and systems, monitoring, advocacy and legal consultancy requirement, including
intelligence information sourcing and evaluation; subject to government accounting and auditing rules
and procedures.

Section 6. Separability Clause - All orders, issuances, rules and regulations or parts thereof
inconsistent with this EO, including EO 376 s.1989, EO 93 s 1993, EO 553 s 2006 and EO 564
s. 2006 are hereby revoked or modified accordingly.

Section 7. Effectivity - This EO shall take effect immediately.

OFFICIAL GAZETTE

ARROYO I Volume 4

Done in the City of Manila, this 1®' day of March, in the year of Our Lord, Two Thousand
and Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 501 - 600[. Manila:
Malacanang Records Office.

MESSAGES OE THE PRESIDENT

ARROYO I Volume 4

MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 565

ATTACHING THE PROFESSIONAL REGULATION COMMISSION TO THE DEPARTMENT OF
LABOR AND EMPLOYMENT FOR GENERAL DIRECTION AND COORDINATION

WHEREAS, the Professional Regulation Commission (PRC) was created pursuant to Republic
Act (RA) No. 8981, otherwise known as the PRC Modernization Act of 2000;

WHEREAS, Section 3 of RA No. 8981 provides that the PRC shall be attached to the Office of
the President for general direction and coordination;

WHEREAS, the Department of Labor and Employment (DOLE) is mandated, under Section 2(1),
Chapter 1, Title VII, Book III of Executive Order (EO) No. 292, otherwise known as the Administrative
Code of 1987, to optimize the development and utilization of the country’s manpower resources;

WHEREAS, the DOLE is in a better position to exercise oversight functions over the PRC;

WHEREAS, Section 20, Chapter 7, Title I, Book III of EO No. 292 grants the President residual
powers to reorganize the Executive Branch of government.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby attach the Professional Regulation
Commission (PRC) to the Department of Labor and Employment (DOLE) for general direction and
coordination.

This Executive Order shall take effect immediately upon publication in a newspaper of general
circulation.

DONE in the City of Manila, this 11th day of September, in the year of Our Lord, Two Thousand Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501
Malacanang Records Office.

600]. Manila:

OFFICIAL GAZETTE

ARROYO I Volume 4

MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 5 65 -A

AMENDING EXECUTIVE ORDER NO. 565, SERIES OF 2006, BY DEFINING THE
ADMINISTRATIVE RELATIONSHIP BETWEEN THE DEPARTMENT OF LABOR AND
EMPLOYMENT AND THE PROFESSIONAL REGULATION COMMISSION (PRC)
AND DELEGATING THE PRESIDENTIAL POWER OF CONTROL OVER THE PRC
TO THE SECRETARY OF LABOR AND EMPLOYMENT

WHEREAS, the Professional Regulation Commission (PRC) is an agency of government under
the Executive Department that, pursuant to Section 17, Article VII of the 1987 Constitution, is under
the control of the President of the Philippines;

WHEREAS, Executive Order No. 565, dated September 11, 2006, transferred the oversight
functions of the Office of the President over PRC to the Department of Labor and Employment
(DOLE), attaching the PRC to DOLE for general direction and coordination;

WHEREAS, the President retains the power of control over the PRC;

WHEREAS, the President sees it fit to delegate to the Secretary of Labor and Employment, as the
President’s alter-ego, her control powers over the PRC.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. The Professional Regulation Commission (PRC) shall remain attached to the
Department of Labor and Employment (DOLE) for general direction and coordination. The Secretary
of Labor and Employment shall additionally have supervision and control of the PRC and shall
exercise jurisdiction over it in accordance with the provisions of Chapters 7, 8, and 9 of Book IV of
Executive Order (EO) No. 292, otherwise known as the Administrative Code of 1987.

SEC. 2. The DOLE Secretary shall have the authority to:

(a) Generally oversee the operations of the PRC and to insure that it is managed effectively,
efficiently and economically, but without interference with day-to-day activities.

(b) Require the submission of reports and cause the conduct of management audit, performance
evaluation and inspection to determine compliance with policies, standards and guidelines of
the DOLE.

(c) Take such action as may be necessary for the proper performance of official functions,
including rectification of violations, abuses and other forms of maladministration.

(d) Review and pass upon budget proposals, but may not increase or add to them.

MESSAGES OF THE PRESIDENT

ARROYO I Volume 4

Except with respect to any quasi-judicial function of the PRC, the DOLE Secretary shall also have
the authority to:

(a) Act directly whenever a specific function is entrusted by law or regulation to the PRC.

(b) Direct the performance of duty or restrain the commission of acts.

(d) Determine priorities in the execution of plans and programs.

(e) Prescribe standards, guidelines, plans and programs.

SEC. 3. All executive orders, rules and regulations and other issuances or parts thereof that are
inconsistent with the provisions of this Executive Order are hereby repealed or modified accordingly.

SEC. 4. This Executive Order shall take effect immediately after its publication in a newspaper of
general circulation.

DONE in the City of Manila, this 9th day of October, in the year of Our Lord, Two Thousand Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

OFFICIAL GAZETTE

ARROYO I Volume 4

MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 566

DIRECTING THE COMMISSION ON HIGHER EDUCATION TO REGULATE THE
ESTABLISHMENT AND OPERATION OF REVIEW CENTERS AND SIMILAR ENTITIES

WHEREAS, the State is mandated to protect the right of all citizens to quality education at all
levels and shall take appropriate steps to make education accessible to all, pursuant to Section 1,
Article XIV of the 1987 Constitution;

WHEREAS, the State has the obligation to ensure and promote quality education through the
proper supervision and regulation of the licensure examinations given through the various Boards of
Examiners under the Professional Regulation Commission;

WHEREAS, the lack of regulatory framework for the establishment and operation of review
centers and similar entities, as shown in recent events, have adverse consequences and affect public
interest and welfare;

WHEREAS, the overriding necessity to protect the public against substandard review centers and
unethical practices committed by some review centers demand that a regulatory framework for the
establishment and operation of review centers and similar entities be immediately instituted;

WHEREAS, Republic Act No. 7722, otherwise known as the Higher Education Act of 1994,
created the Commission on Higher Education, which is best equipped to carry out the provisions
pertaining to the regulation of the establishment and operation of review centers and similar entities.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Establishment of a System of Regulation for Review Centers and Similar
Entities. The Commission on Higher Education (CHED), in consultation with other concerned
government agencies, is hereby directed to formulate a framework for the regulation of review centers
and similar entities, including but not limited to the development, and institutionalization of policies,
standards, guidelines for the establishment, operation and accreditation of review centers and similar
entities; maintenance of a mechanism to monitor the adequacy, transparency and propriety of their
operations; and reporting mechanisms to review performance and ethical practice.

SEC. 2. Coordination and Support. The Professional Regulation Commission (PRC), Technical
Skills Development Authority (TESDA), Securities and Exchange Commission (SEC), the various
Boards of Examiners under the PRC, as well as other concerned non-government organizations like
professional societies, and various government agencies, such as the Department of Justice (DOJ),
National Bureau of Investigation (NBI), Office of the Solicitor General (OSG), and others that may be
tapped later, shall provide the necessary assistance and technical support to the CHED in the successful
operationalization of the System of Regulation envisioned by this Executive Order.

SEC. 3. Permanent Office and Staff. To ensure the effective implementation of the System of
Regulation, the CHED shall organize a permanent office under its supervision to be headed by an
official with the rank of Director and to be composed of highly competent individuals with expertise in

MESSAGES OF THE PRESIDENT

ARROYO I Volume 4

educational assessment, evaluation and testing; policies and standards development, monitoring, legal
and enforcement; and statistics as well as curriculum and instructional materials development. The
CHED shall submit the staffing pattern and budgetary requirements to the Department of Budget and
Management (DBM) for approval.

SEC. 4. Indorsement Requirement. No review center or similar entities shall be established and/
or operate review classes without the favorable expressed indorsement of the CITED and without the
issuance of the necessary permits or authorizations to conduct review classes. After due consultation
with the stakeholders, the concerned review centers and similar entities shall be given a reasonable
period, at the discretion of the CITED, to comply with the policies and standards, within a period
not exceeding three (3) years, after due publication of this Executive Order. The CHED shall see to it
that the System of Regulation including the implementing mechanisms, policies, guidelines and other
necessary procedures and documentation for the effective implementation of the System, are completed
within sixty days (60) upon effectivity of this Executive Order.

SEC. 5. Funding. The initial amount necessary for the development and implementation of the
System of Regulation shall be sourced from the CHED Higher Education Development Eund (HEDE),
subject to the usual government accounting and auditing practices, or from any applicable funding
source identified by the DBM. Eor the succeeding fiscal year, such amounts as may be necessary for the
budgetary requirement of implementing the System of Regulation and the provisions of this Executive
Order shall be provided for in the annual General Appropriations Act in the budget of the CHED.
Whenever necessary, the CHED may tap its Development Eunds as supplemental source of funding
for the effective implementation of the regulatory system. In this connection, the CHED is hereby
authorized to create special accounts in the HEDE exclusively for the purpose of implementing the
provisions of this Executive Order.

SEC. 6. Review and Reporting. The CHED shall provide for the periodic review performance of
review centers and similar entities and shall make a report to the Office of the President of the results
of such review, evaluation and monitoring.

SEC. 7. Separability. Any portion or provision of this Executive Order that may be declared
unconstitutional shall not have the effect of nullifying other provisions hereof, as long as such
remaining provisions can still subsist and be given effect in their entirety.

SEC. 8. Repeal. All rules and regulations, other issuances or parts thereof, which are inconsistent
with this Executive Order, are hereby repealed or modified accordingly.

SEC. 9. Effectivity. This Executive Order shall take effect immediately upon its publication in a
national newspaper of general circulation.

OFFICIAL GAZETTE

ARROYO I Volume 4

DONE in the City of Manila, this 8* day of September, in the year of Our Lord, Two Thousand
and Six.

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

(Sgd.) GLORIA MACAPAGAL-ARROYO

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

MESSAGES OE THE PRESIDENT

ARROYO I Volume 4

MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 567

DEVOLVING THE TAGUIG-PATEROS DISTRICT HOSPITAL FROM THE
DEPARTMENT OF HEALTH TO THE CITY OF TAGUIG

WHEREAS, Republic Act No. 7842 approved on 16 December 1994 established the
Taguig-Pateros District Hospital under the administration and supervision of the Department of
Health (DOH);

WHEREAS, under Republic Act No. 7160 otherwise known as the Local Government Code
of 1991, local government units (LGUs) shall exercise such powers and discharge such functions
and responsibilities as are necessary, appropriate or incidental to efficient and effective provision
of basic services and facilities which cover, among others, health services including secondary and
tertiary hospitals;

WHEREAS, the President has the continuing authority to reorganize the offices under the
executive department;

NOW, THEREFORE, I, GLORIA MACAPAGAL ARROYO, President of the Philippines, by
virtue of the powers vested in me by law, do hereby order:

Section 1. The administration and supervision of Taguig-Pateros District Hospital is hereby
devolved from the Department of Health to the City of Taguig.

Section 2. All laws, issuances, rules and regulations which are inconsistent with this Order are
hereby repealed or modified accordingly.

Section 3. This Executive Order shall take effect fiheen (15) days after its publication in a national
newspaper of general circulation.

Done in the City of Manila, this 8* day of September, in the year of our Lord, Two Thousand
and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

OFFICIAL GAZETTE

ARROYO I Volume 4

MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 568

TRANSFERRING THE NEW BILIBID PRISON FROM BARANGAY POBLACION,
MUNTINLUPA CITY, TO BARANGAY CUYAMBAY, MUNICIPALITY OF TANAY,

PROVINCE OF RIZAL

WHEREAS, it is the objective of the State to institute an improved national prison system which
is conducive to the reformation and rehabilitation of inmates that will bring them back into the
mainstream of society as useful citizens of the country;

WHEREAS, the New Bilibid Prison Reservation in Muntinlupa City was established in 1935
as one of the seven (7) penal institutions run by the Bureau of Corrections of the Department
of Justice;

WHEREAS, there is a need to improve, expand and upgrade the facilities of the New Bilibid
Prison and, at the same time, to relocate it to another site for practical purposes owing to the growing
number of residential communities around the penal institution and the more strategic or higher
developmental use planned by the government for its current site;

WHEREAS, Proclamation No. 1158 , series of 2006, has reserved a parcel of land located
in Barangay Cuyambay, Municipality of Tanay, Province of Rizal, with an area of Two Hundred
Seventy (270) hectares, as the new site of the New Bilibid Prison;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Transfer of the New Bilibid Prison. - The Department of Justice (DOJ) is hereby
authorized and directed to carry out or cause the transfer of the New Bilibid Prison from its current
site at Barangay Poblacion, Muntinlupa City, Metro Manila, to Barangay Cuyambay, Municipality of
Tanay, Province of Rizal.

The DOJ shall be responsible for the performance and coordination of all tasks and activities
related to the transfer of the New Bilibid Prison such as the preparation of the technical plans for the
new site, the procurement of works and services, and the development and management of the new
correctional facility, in coordination with the Department of Public Works and Highways (DPWH),
the Department of Budget and Management (DBM), the Department of Environment and Natural
Resources (DENR), and other concerned government agencies.

SECTION 2. Funding. - The funding requirements and arrangements for the transfer of the New
Bilibid Prison facilities, including the funding sources thereof, shall be determined jointly by the DOJ,
the DBM, and the DPWH.

SECTION 3. Implementation. - The DOJ and other concerned agencies shall prepare and finalize
the implementation scheme and financing plan for the transfer of the New Bilibid Prison within
six (6) months from the date of issue of this Executive Order.

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ARROYO I Volume 4

SECTION 4. Repealing Clause. - All executive issuances, rules and regulations or parts thereof
that are inconsistent with the provisions of this Executive Order are hereby repealed, amended or
modified accordingly.

SECTION 5. Effectivity. - This Executive Order shall take effect immediately.

DONE, in the City of Manila, this 8* day of September, in the year of our Lord, Two Thousand
and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

OFFICIAL GAZETTE

ARROYO I Volume 4

MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 569

DEFINING THE ROLE OF THE REGIONAL KAPIT-BISIG LABAN SA KAHIRAPAN (KALAHI)
CONVERGENCE GROUPS IN THE COMPREHENSIVE PEACE PROCESS AND
PROVIDING FUNDS FOR THE PURPOSE

WHEREAS, Executive Order No. 3, series of 2001, affirms the government’s commitment to
implement a comprehensive peace process to address the internal armed conflicts in the country and
their root causes, which include, among others, poverty and economic inequity;

WHEREAS, Memorandum Circular No. 33, issued by the Office of the President on 23 November
2002, institutionalizes the Kapit Bisig Laban sa Kahirapan (KALAHI) as the government’s overarching
strategy for poverty reduction, and enjoins government agencies to observe multi-stakeholder and
inter-agency convergence in all poverty reduction activities;

WHEREAS, by virtue of MC No. 33, Regional KALAHI Convergence Groups (RKCGs), chaired
by the Presidential Assistants (PAs), have been put in place as the focal mechanisms to coordinate anti-
poverty efforts in the regions;

WHEREAS, the National Peace Plan, i.e. Chapter 14 of the Medium-Term Philippine
Development Plan 2004-2010, calls for the mobilization and strengthening of KALAHI in line with
government’s peace building and conflict prevention thrust, including rehabilitation and development
of conflict-affected areas, as well as support to local peace initiatives of civil society groups and local
government units (LGUs);

WHEREAS, the Office of the Presidential Adviser on the Peace Process (OPAPP), which oversees
and coordinates implementation of the comprehensive peace process, has established close linkage with
PAs and the RKCGs as well as LGUs in pursuit of its mandate;

NOW, THEREFORE, I, GLORIA MACAPAGAL ARROYO, President of the Philippines, by
virtue of the powers vested in me by law, do hereby order:

SECTION 1. The RKCGs under the leadership of the PAs as “Regional Peace Advisors”, shall
serve as OPAPP’s regional mechanism, with the following functions:

1. Assist the OPAPP in facilitating, coordinating and monitoring the implementation of the
comprehensive peace process through programs and projects in the various regions;

2. Coordinate with the Regional Peace and Order Councils (RPOCs) and local government units
(LGUs) to ensure complementation and convergence of peace efforts and initiatives at the
regional and local levels;

3. Provide the venue/forum for sharing of experiences and best practices in peace building and
conflict resolution among local government units and civil society groups, as well as for
resolution of critical peace issues;

MESSAGES OF THE PRESIDENT

ARROYO I Volume 4

4. Serve as a quick-response mechanism to prevent the outbreak and/or escalation of armed
conflicts, and address humanitarian needs and other urgent concerns arising from on-going
hostilities, in coordination with other agencies;

5. Provide regular reports and recommendations to the President, through the Office of the
Presidential Adviser on the Peace Process (OPAPP), on regional peace and conflict situations
and the status of implementation of regional peace plans, programs and projects.

SECTION 2. The OPAPP, in coordination with the National Anti-Poverty Commission (NAPC),
shall extend technical, capacity-building and mobilization support to RKCGs in the exercise of the
abovementioned functions. For this purpose, OPAPP and NAPC shall ensure that sufficient funds
shall be appropriated in their annual budgets for the provision of said support, as well as tap external
sources of funds.

SECTION 3. All orders, issuances, rules and regulations which are inconsistent with this
Executive Order are hereby repealed and modified accordingly.

SECTION 4. Any provision hereof that may be declared in violation of existing laws shall in no
way nullify the other provisions of this Executive Order.

SECTION 5. This Executive Order shall take effect immediately.

Done in the City of Manila, this 26th day of September, in the year of our Lord, Two Thousand
and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

OFFICIAL GAZETTE

ARROYO I Volume 4

MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 570

INSTITUTIONALIZING PEACE EDUCATION IN BASIC EDUCATION
AND TEACHER EDUCATION

WHEREAS, the Philippines adheres to the policy of peace, equality, justice, and freedom, as
enunciated in the 1987 Constitution;

WHEREAS, the attainment of a just, comprehensive and lasting peace is a paramount agenda
of the Government as spelled out in Executive Order No. 3, series of 2001, and the Medium-Term
Philippine Development Plan 2004-2010, as well as in support of the United Nation’s Declaration and
Programme of Action to promote and strengthen a culture of peace in the new millennium;

WHEREAS, EO No. 3 calls for building and nurturing a climate conducive to peace through
peace advocacy and peace education programs;

WHEREAS, the Office of the Presidential Adviser on the Peace Process (OPAPP) has established
partnership with public and private schools and non-government organizations in promoting and
implementing peace education;

WHEREAS, OPAPP and the Department of Education (DepEd) have developed elementary and
high school peace education exemplars, which were launched in September 2005;

NOW, THEREEORE, I, GLORIA MACAPAGAL ARROYO, President of the Philippines, by
virtue of the powers vested in me by law, do hereby order:

Section 1. The DepEd shall mainstream peace education in the basic formal and non-formal
education curriculum, utilizing the existing peace education exemplars and other peace related
modules, and enhance the knowledge and capability of supervisors, teachers and non-teaching
personnel on peace education through the conduct of in-service trainings.

Section 2. The Commission on Higher Education (CHED) shall introduce and mainstream peace
education in teacher education.

Section 3. The OPAPP, in collaboration with DepEd and CHED shall strengthen linkage with
private schools in promoting peace education.

Section 4. The OPAPP, DepEd and CHED shall establish/enhance mechanisms and appropriate
funds in their respective departments to ensure the sustained implementation of peace education in the
educational system.

Section 5. All issuances, rules and regulations which are inconsistent with any provisions of this
Executive Order are hereby repealed, amended or modified accordingly.

Section 6. This Executive Order shall take effect immediately.

MESSAGES OF THE PRESIDENT

ARROYO I Volume 4

Done in the City of Manila, this 26th day of September, in the year of our Lord, Two Thousand
and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

OFFICIAL GAZETTE

ARROYO I Volume 4

MALACANAN PALACE
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 571

CREATING THE PUBLIC-PRIVATE SECTOR TASK FORCE ON
PHILIPPINE COMPETITIVENESS

WHEREAS, it is the collective desire of the government and the business sector to improve
international competitiveness to strengthen our industry, agriculture and service sectors, create jobs,
and increase incomes as we move up the value chain;

WHEREAS, the holding of a National Competitiveness Summit aims to immediately address the
critical problems on business efficiency, infrastructure, and governance, which are contributing to the
decline in the country’s international competitiveness;

WHEREAS, the implementation of an Action Agenda requires efficient coordination and joint
responsibility between the government and the private sector under an empowered national body;

WHEREAS, the creation of a Public-Private Sector Task Force on Philippine Competitiveness is
broadly supported by the private sector, which is keen to work closely with government to encourage
competitiveness and pursue meaningful and effective legal, regulatory, institutional, procedural, and
other appropriate reforms;

WHEREAS, Section 20, Chapter 7, Title I, Book III of EO No. 292 grants the President residual
powers to reorganize the administrative structure of the Executive Branch of government.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Public-Private Sector Task Force on Philippine Competitiveness. There is hereby
created a Public-Private Sector Task Force on Philippine Competitiveness, hereinafter referred to as the
Task Force, which shall be attached to the Office of the President.

SEC. 2. Mandate. The Task Force will promote and develop national competitiveness by seeing
to the implementation of the Action Agenda for Competitiveness, hereinafter referred to as the
Action Agenda.

SEC. 3. Composition. The Task Force shall be composed of the Department Secretaries of
Trade and Industry (DTI), Finance (DOF), Transportation and Communications (DOTC), Education
(DepEd), and the Director General of the National Economic Development Authority (NEDA),
and three (3) representatives from the business sector, including the Senior Advisor on International
Competitiveness, one (1) representative from policy research institutions, and one (1) representative
from civil society.

The Secretary of Trade and Industry and one (1) representative from the business sector shall be
Co-Chairs of the Task Force.

SEC. 4. Powers and Functions. The Task Force shall exercise the following powers and functions
in order to carry out its mandate:

MESSAGES OF THE PRESIDENT

ARROYO I Volume 4

(a) Coordinate, monitor, and assess implementation of the Action Agenda and, when necessary,
recommend appropriate adjustments thereon in the light of changing conditions in both the
domestic and international environment.

(b) On behalf of the President, direct specific departments and agencies to attend to the bottlenecks
and problems constraining competitiveness in any of the areas mentioned in the Action
Agenda, and require the concerned Secretaries, to deliver progress report(s) on the actions/
initiatives, taken to resolve these areas of concern.

(d) Coordinate with Local Government Units (LGUs) through the respective leagues for the
formulation of standards and policies to be observed by Local Government Units (LGUs) in
order to ensure that plans and budgets of LGUs are supportive of the thrusts of the Action
Agenda, and ensure optimal allocation of expenditures.

(e) Coordinate with concerned agencies for the generation of resources, both governmental and
non-governmental, local, national and international, as may be appropriate, in and for the
development, marketing, growth and competitiveness of the Philippine economy as set by the
Action Agenda.

(f) Perform such other powers and functions as may be necessary, incidental or proper to its
mandate, or as may be assigned from time to time by the President.

SEC. 5. Secretariat. The Task Force shall organize a Secretariat which shall report directly to it
and shall be managed by two (2) Directors for Operations, one representing the Public Sector and the
other representing the Private Sector (funded by the private sector).

SEC. 6. Coordination. The Task Force shall regularly coordinate with industry/trade associations,
local and foreign chambers of commerce and the Senior Advisor on International Competitiveness to
ensure the competitiveness of Philippine industries.

They may be invited as resource persons during meetings of the Task Force to carry out its
mandate.

SEC. 7. Funding. The activities and operational expenses of the Task Force shall be funded jointly
by budgetary appropriations from the government and from private sector contributions. To carry
out the provisions of this Order, an initial allocation of Ten Million Pesos (P10,000,000.00) for the
necessary operating expenses of the Task Force shall come from funds of the Department of Trade and
Industry. Subsequent funding for the Task Force may be incorporated in the budget proposal of the
Department of Trade and Industry, subject to existing accounting and auditing laws, and procedures.

The private sector shall fund its own participation in the work of the Task Force. They are
encouraged to secure their own funding through grants and other contributions from foreign and local
private sector counterparts, subject to applicable laws, rules and regulations.

Donations for the operations of Task Force shall be received, accounted for, and disbursed in
accordance with pertinent and existing laws, accounting and auditing rules and regulations.

SEC. 8. Repealing Clause. All Executive Orders, other issuances, or parts thereof, which are
inconsistent with this Executive Order, are hereby repealed, amended or modified accordingly.

SEC. 9. Effectivity. This Executive Order shall take effect immediately.

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ARROYO I Volume 4

DONE in the City of Manila, this day of October, in the year of Our Lord, Two Thousand
and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

MESSAGES OE THE PRESIDENT

ARROYO I Volume 4

MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 572

REINSTATING THE MOVIE AND TELEVISION REVIEW AND CLASSIFICATION
BOARD (MTRCB) APPEALS COMMITTEE, AMENDING SECTION 1 (A) (3) OF
EXECUTIVE ORDER NO. 357, S. OF 2004

WHEREAS, on September 27, 2003, the Movie and Television Review and Classification Board
(MTRCB) Appeals Committee in the Office of the President was constituted pursuant to Section 4 of
Presidential Decree (PD) No. 1986 by then President Fidel V Ramos;

WHEREAS, on September 14, 2004, MTRCB Appeals Committee was abolished by EO No. 357,
s. of 2004 (Pursuing the Rationalization of the Organization and Supervision of Agencies under/
attached to the Office of the President);

WHEREAS, there is a need to reconstitute the MTRCB Appeals Committee to handle appeals
from MTRCB decisions disapproving or prohibiting the exhibition of motion picture or television
program in its entirety;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, by
virtue of the powers vested in me by law, do hereby order:

SECTION 1. Reinstatement of MTRCB Appeals Committee. The MTRCB Appeals Committee,
abolished under Executive Order No. 357, s. of 2004, is hereby reinstated to review decisions of
MTRCB and submit its recommendations to the President.

SECTION 2. Composition - The MTRCB Appeals Committee in the Office of the President shall
be composed of five (5) members to be appointed/designated by the President as follows:

1. Representative of the President - Chairman

2. Representative of the Press Secretary - Vice Chairman

3. Representative of the Presidential Council for Youth Affairs - Member

4. Representative of the Movie Industry - Member

5. Representative of the Television Industry - Member

The vote of at least three (3) concurring members of the Committee shall be required for the
validity of a Committee decision.

SEC. 3. Term of Office - The persons designated in Section 2 hereof shall continue to function
until he or she is replaced;

SEC. 4. Sole Function - The MTRCB Appeals Committee shall have no other function than to
review the second decision of MTRCB disapproving or prohibiting in its entirety the exhibition of a
motion picture or television program. A decision of the MTRCB, after a second review, disapproving or
prohibiting the exhibition of a motion picture or television program in its entirety shall be appealable
to the President of the Philippines. Said appeal, copy furnished MTRCB, shall be coursed through a

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ARROYO I Volume 4

Committee, which, after conducting its own review, shall, within thirty (30) days from perfection of the
appeal, submit its recommendations to the President.

SEC. 5 Secretariat -Pursuant to Section 4 of Presidential Decree No. 1986, the Office of the
(Assistant), now. Deputy Executive Secretary for Legal Affairs (ODESLA) shall serve as the Secretariat
of the Committee.

SEC. 6. Agency Assistance - In resolving the appeal, MTRCB and other concerned agencies shall
extend such assistance and cooperation as may be required by the Committee.

SEC. 7. MTRCB as an Observer - A representative of the MTRCB Chairman shall be present
during the review and the deliberations of the Committee as an Observer, and who may be consulted
by the Committee on matters pertaining to MTRCB Rules and Regulations and on the circumstances
pertaining to the MTRCB’s decision on the case under deliberation.

SEC. 8. Rules and Regulations - The Committee may, in addition to Administrative Order
No. 18, s. of 1987, governing appeals to the Office of the President and the provisions of this Executive
Order, promulgate its own rules of procedure for the conduct of the review.

SEC. 9. Repealing Clause - This Executive Order effectively repeals Section 1 (A) (3) of Executive
Order No. 357, s. of 2004, and amends Memorandum Order No. 226 dated September 22, 2006.

SEC. 10. Effectivity - This Executive Order shall take effect immediately upon its publication in a
national newspaper of general circulation.

DONE, in the City of Manila, this 17th day of October, in the year of our Lord, Two Thousand
and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501
Malacanang Records Office.

600[. Manila:

MESSAGES OE THE PRESIDENT

ARROYO I Volume 4

MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 573

DIRECTING THE DEPARTMENT OF JUSTICE TO CREATE AN ANTI-FRAUD TASK FORCE
IN ORDER TO STRENGTHEN THE DRIVE AGAINST CREDIT CARD FRAUDS AND

OTHER FRAUDULENT PRACTICES

WHEREAS, the widespread use of credit cards empowers consumers, both local and foreign, in
their commercial transactions because of the convenience it presents as well as international acceptance;

WHEREAS, the occurrence of credit card frauds are increasing, and acquiring banks incur huge
losses and suffer stunted credit card sales, ultimately threatening the survival of the credit card industry,
including the negative repercussions in the domestic economy;

WHEREAS, the high level of credit card frauds creates a bad image for the country in the global
market, prompting government to exert efforts to effectively counteract such form of economic
sabotage in order to promote tourism in the country;

WHEREAS, Republic Act No. 8484, otherwise known as the Access Devices Regulation Act of
1998, which regulates the issuance and use of credit cards as an access device and seeks to curtail credit
card frauds and the proliferation of fraudulent cards, requires a robust system of implementation to be
more effective;

WHEREAS, the Department of Justice is the agency that can assist in the effective implementation
of the Access Devices Regulation Act of 1998.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of
the Philippines, by virtue of the powers vested in me by law, do hereby direct the Secretary of the
Department of Justice (DOJ) to create an Anti-Fraud Task Force (AFTF) that will assist in the effective
implementation of Republic Act No. 8484, otherwise known as the Access Devices Regulation Act of
1998, in order to strengthen the drive against credit card frauds and other fraudulent practices.

SECTION 1. Composition. The AFTF shall be composed of representatives from the DOJ, the
National Bureau of Investigation (NBI), and the Philippine National Police (PNP). The Secretary of
Justice shall designate its head and deputy.

SEC. 2. Reporting. The AFTF shall submit to the Secretary of Justice reports of its activities with
the appropriate recommendation, and the latter shall report the same to the Ofice of the President for
information.

SEC. 3. Effectivity. This Executive Order shall take effect immediately.

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ARROYO I Volume 4

DONE in the City of Manila, this 25th day of October, in the year of Our Lord, Two Thousand
and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

MESSAGES OE THE PRESIDENT

ARROYO I Volume 4

MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 574

MODIFYING THE NOMENCLATURE AND THE RATES OF IMPORT DUTY ON VARIOUS
PRODUCTS UNDER SECTION 104 OF THE TARIFF AND CUSTOMS CODE OF 1978

(PD 1464, AS AMENDED)

WHEREAS, the basic task of the 2004-2010 Medium-Term Philippine Development Plan is to
fight poverty by building prosperity for the greatest number of Filipino people;

WHEREAS, it is the policy of the government to encourage the development of sustainable,
prosperous and world-class domestic industries that will spur economic growth and create jobs;

WHEREAS, a dynamic economic landscape warrants a recalibration of the tariff structure
consistent with the promotion of Philippine industries;

WHEREAS, Section 401 of the Tariff and Customs Code of 1978 (PD 1464, as amended),
empowers the President of the Republic of the Philippines to increase, reduce or remove existing rates
of import duty, as well as to modify the tariff nomenclature;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. The articles specifically listed in Annex “A” hereof, as classified under Section 104
of the Tariff and Customs Code of 1978, as amended, shall be subject to the Most-Favoured Nation
(MEN) rate of import duty in accordance with the schedule indicated opposite each article.

SECTION 2. Upon the effectivity of this Executive Order, the articles specifically listed in
the aforesaid Annex “A” which are entered and withdrawn from warehouses in the Philippines for
consumption shall be levied the MEN rates of import duty therein prescribed.

SECTION 3. All Presidential issuances, administrative rules and regulations, or parts hereof,
which are inconsistent with this Executive Order are hereby revoked or modified accordingly.

SECTION 4. This Executive Order shall take effect thirty (30) days following its complete
publication in two (2) national newspapers of general circulation in the Philippines.

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ARROYO I Volume 4

Done in the City of Manila, this 4* day of November, in the year of Our Lord, Two Thousand
and Six.

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

(Sgd.) GLORIA MACAPAGAL-ARROYO

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

MESSAGES OE THE PRESIDENT

ARROYO I Volume 4

MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 575

MODIFYING THE RATES OF DUTY ON CERTAIN IMPORTED ARTICLES AS PROVIDED
UNDER THE TARIFF AND CUSTOMS CODE OF 1978, AS AMENDED, IN ORDER TO
IMPLEMENT THE PREFERENTIAL TARIFF RATES ON CERTAIN PRODUCTS UNDER
THE ASEAN INDUSTRIAL COOPERATION (AICO) SCHEME, IN FAVOR OF HONDA CARS
PHILIPPINES, INC. (HCPI) AND HONDA PARTS MANUFACTURING CORPORATION

(COE NO. HONDA/2006/46)

WHEREAS, the Philippines is a Contracting Party to the Basic Agreement on the ASEAN
Industrial Cooperation Scheme (AICO) signed in Singapore on 27 April 1996;

WHEREAS, the Philippines is a participating country in the approved AICO Arrangements of
Honda Cars Philippines, Inc. along with Indonesia;

WHEREAS, under the Honda AICO Certificate of Eligibility No. Honda/2006/46, the
Philippines (Honda Cars Philippines, Inc. and Honda Parts Manufacturing Corporation) will import
from Indonesia (PT. Honda Prospect Motor and PT. Honda Precision Parts Manufacturing) certain
original equipment manufacture (OEM) automotive parts/components for Honda Civic, Honda City
and Honda CR-V. In exchange, Indonesia (PT. Honda Prospect Motor and PT. Honda Precision Parts
Manufacturing) will import from the Philippines complementary parts/components for the OEM of
Honda CR-V, Jazz and Stream;

WHEREAS, AICO Certificate of Eligibility No. Honda/2006/46 was issued on 19 July 2006, in
favor of the participating companies in the Honda AICO Arrangement;

WHEREAS, in consonance with Articles 5 and 7 of the Basic Agreement of the AICO Scheme, as
amended, participating companies in the approved Honda AICO Arrangements shall qualify for 0%
preferential tariff rate to be extended by Indonesia and the Philippines as participating countries.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines,
pursuant to the powers vested in me under Section 402 of the Tariff and Customs Code of 1978, as
amended, do hereby order:

SECTION 1. The articles specifically listed in Annex “A” hereof, as classified under Section 104
of the Tariff and Customs Code of 1978, as amended, shall be accorded the AICO rate of 0% on parts/
components as specified in Column 5 thereof.

SECTION 2. The AICO rate provided in Annex “A” shall be accorded to the AICO entity in
Indonesia (PT Honda Prospect Motor and PT Honda Precision Parts Manufacturing) upon the
effectivity of this Executive Order.

SECTION 3. Upon the effectivity of this Executive Order, the articles specifically listed in the
aforesaid Annex “A” which are entered or withdrawn from warehouses in the Philippines for
consumption shall pay the applicable AICO preferential tariff rates specified under Section 1 hereof,
subject to qualification under the Rules of Origin for the CEPT, as evidenced by the Certificate of
Origin- Form “D”.

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SECTION 4. All presidential issuances, administrative rules and regulations or parts thereof,
which are contrary to or inconsistent with this Executive Order are hereby revoked or modified
accordingly.

SECTION 5. This Executive Order shall take effect immediately after its publication in two (2)
national newspapers of general circulation in the Philippines.

DONE in the City of Manila, this 5th day of November, in the year of Our Lord, Two Thousand
and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Reference: Annex A

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

MESSAGES OE THE PRESIDENT

ARROYO I Volume 4

MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 576

ABOLISHING THE GOVERNMENT MASS MEDIA GROUP AND FOR OTHER PURPOSES

WHEREAS, the Government Mass Media Group (GMMG) was created by Executive Order
No. 348 dated 1 1 August 2004 to supervise and control the government-owned mass media entities;

WHEREAS, the charter of the Philippines Information Agency (PIA) empowers it to have access
to government media agencies for the purpose of disseminating development-oriented information;

WHEREAS, there is a need to ensure effective coordination between and among allied
government agencies for better information dissemination; and

WHEREAS, Executive Order No. 292, otherwise known as the “Administrative Code of 1987,”
grants the President continuing authority to reorganize the administrative structure of the Office of
the President.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order;

SECTION 1. The GMMG is hereby abolished. Its properties, staff and resources shall be
transferred to the Office of the Press Secretary (OPS).

SEC. 2. The PIA Director-General, who shall continue to have Cabinet rank, shall exercise
supervision and control “By authority of the President” over the following:

(a) Philippine News Agency (PNA);

(b) Bureau of Broadcast Services (BBS);

(d) National Broadcasting Network, Inc. (NBN-4);

(e) Radio Philippines Network, Inc. (RPN-9);

(f) International Broadcasting Corporation (IBC-13).

SEC. 3. The President of the Philippines shall appoint the Chairman, President and General
Manager of NBN-4. With respect to RPN-9 and IBC-13, the President shall express her desire whom
she wishes to be elected as Board Members, Chairmen and Presidents thereof.

SEC. 4. The Chairman of NBN-4 shall not hold any other government position.

SEC. 5. The President and General Manager of NBN-4 shall be two different persons. The same
distinction shall apply to the Presidents and General Managers of RPN-9 and IBC-13.

SEC. 6. The National Printing Office and the APO Production Unit shall attached to the OPS.

SEC. 7. All orders, issuances, rules and regulations or parts therefore inconsistent with this
Executive Order are hereby repealed or modified accordingly.

SEC. 8. This Executive Order shall take effect after its publication in a national newspaper of
general circulation.

OFFICIAL GAZETTE

ARROYO I Volume 4

DONE in the City of Manila, this 7th day of November, in the year of Our Lord, Two Thousand
and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

MESSAGES OE THE PRESIDENT

ARROYO I Volume 4

MALACANANG

MANILA

EXECUTIVE ORDER NO. 577

PLACING THE URBAN ASSET REFORM PROJECT MANAGEMENT OFFICE UNDER
THE HOUSING AND URBAN DEVELOPMENT COORDINATING COUNCIL,
AND FOR OTHER PURPOSES

WHEREAS, the government’s anti-poverty program is anchored on, among others, urban
asset reform;

WHEREAS, government has committed to streamline and rationalize the bureaucracy and adopt
a homogenous grouping of functionally-related government agencies;

WHEREAS, the Urban Asset Reform Project Management Office (UARPMO), created by virtue
of Executive Order No. 371 (s. 2004) and mandated to develop the integration of formal and informal
settlements into one legal system as a framework of Philippine urban asset reform;

WHEREAS, the Housing and Urban Development Coordinating Council (HUDCC), created by
virtue of EO 90 (s. 1986), is mandated to formulate national objectives, policies and strategies for
housing and urban development;

WHEREAS, there is a need to facilitate the coordination of policies and programs relative to
housing, urban development and urban asset reform;

WHEREAS, Section 31, Chapter 10, Title III, Book III of Executive Order 292, otherwise known
as the Administrative Code of 1987, provides continuing authority to the President to reorganize the
administrative structure of the Office of the President;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Placing the Urban Asset Reform Project Management Office under HUDCC. The
Urban Asset Reform Project Management Office is hereby placed under the Housing and Urban
Development Coordinating Council, which shall exercise control and supervision over the said office.

SECTION 2. Assistance to the HUDCC and UARPMO. All national government offices,
including government-owned and/or -controlled corporations, government financial institutions, local
government units, and other instrumentalities, are hereby directed to render the assistance needed by
the HUDCC and UARPMO in its implementation of the asset reform program.

SECTION 4. Separability clause. In the event that any provision of this Order is declared invalid,
the other provisions that are unaffected thereby shall remain in full force and effect.

SECTION 5. Repeal. All orders, rules and regulations or parts thereof inconsistent with this
Executive Order are hereby repealed, amended or modified accordingly.

SECTION 6. Effectivity. This Executive Order shall take effect immediately.

OFFICIAL GAZETTE

ARROYO I Volume 4

DONE, in the City of Manila, this 17th day of November, in the year of Our Lord, Two Thousand
and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

MESSAGES OE THE PRESIDENT

ARROYO I Volume 4

MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 578

ESTABLISHING THE NATIONAL POLICY ON BIOLOGICAL DIVERSITY, PRESCRIBING
ITS IMPLEMENTATION THROUGHOUT THE COUNTRY, PARTICULARLY IN THE SULU
SULAWESI MARINE ECOSYSTEM AND THE VERDE ISLAND PASSAGE MARINE CORRIDOR

WHEREAS, biological diversity, also referred to as biodiversity, is essential to sustain all life
and is a foundation of a sound environment that is necessary for human well-being and sustainable
development;

WHEREAS, the Philippines, as one of eighteen (18) mega-biodiversity countries that collectively
make up two-thirds of the earth’s biological diversity, is immensely rich in both terrestrial and marine
biodiversity;

WHEREAS, the Philippines is also known as one of the biodiversity hotspots where biological
diversity is under constant threat due to unsustainable resource use practices, overexploitation,
population pressure, poverty and other factors;

WHEREAS, the 1987 Constitution provides in Section 16 of Article II that the State shall protect
and advance the right of the people to a balanced and healthful ecology in accord with the rhythm and
harmony of nature;

WHEREAS, Republic Act (RA) No. 7586, otherwise known as the National Integrated Protected
Areas System (NIPAS) Act of 1992, RA No. 9147, otherwise referred to as the Wildlife Resources
Conservation and Protection Act, RA No. 9072, otherwise referred to as the National Caves and Cave
Resources Management and Protection Act, and RA No. 8550, otherwise known as the Philippine
Fisheries Code of 1998 mandate the state to protect and conserve biological diversity;

WHEREAS, the Department of Environment and Natural Resources (DENR), its partner
institutions and civil society have developed the National Biodiversity Strategy and Action Plan
(NBSAP) in 1997 and its iteration in 2002 entitled “Philippine Biodiversity Conservation Priority-
Setting Program”;

WHEREAS, Executive Order (EO) No. 533, issued in June 2006, adopted the Integrated Coastal
Management (ICM) as a national strategy for sustainable development of marine and coastal resources;

WHEREAS, there are many efforts throughout the country by local communities, civil society
organizations, and the private sector to converse, protect and sustainably use biodiversity;

WHEREAS, the Philippines is a party to various multilateral environmental agreements with
the aim of conserving and sustainably using biological diversity, including the United Nations (UN)
Convention on Biological Diversity, the Cartagena Protocol on Biosafety, the Convention on Migratory
Species of Wild Animals, the Convention on International Trade in Endangered Species (CITES) of
Wild Fauna and Flora, the Convention of Wetlands, and the UNESCO World Heritage Convention,
among others;

WHEREAS, the Philippines is a party to the UN Convention on the Law of the Sea and the Basel
Convention, and is a member of the International Maritime Organization, as well as a party to various
international agreements on marine pollution;

OFFICIAL GAZETTE

ARROYO I Volume 4

WHEREAS, the Philippines is a signatory to the Memorandum of Understanding on the
Conservation and Management of Marine Turtles and their Habitats of the Indian Ocean and South-East
Asia (lOSEA), has adopted the Sustainable Development Strategy for the Seas of East Asia (SDS-EAS),
and is a partner of the Partnerships in Environmental Management for the Seas of East Asia (PEMSEA);

WHEREAS, the Sulu Sulawesi Marine Ecoregion (SSME) is situated at the apex of the coral
triangle, which is recognized as having the highest coral diversity in the world, and is jointly managed
by the Philippines, Malaysia and Indonesia under a Memorandum of Understanding signed in 2004
and in accordance with the SSME Conservation Plan;

WHEREAS, the Verde Island Passage Marine Corridor, within the SSME and inside Philippine
territory covering the provinces of Batangas, Mindoro Occidental, Mindoro Oriental, Marinduque and
Romblon, has been identified by scientists as the Center of Marine Shorefish Diversity in the world;

WHEREAS, there is a need to establish, in accordance with law, the National Policy on Biological
Diversity, and prescribe its implementation throughout the country, particularly in the Verde Island
Passage Marine Corridor, and in all Philippine territory within the SSME.

NOW, THEREEORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Policy of the State on Biological Diversity. In accordance with law, it is the policy
of the state to protect, conserve, and sustainably use biological diversity to ensure and secure the well-
being of present, and future generations of Filipinos. This state policy extends to all the components of
biodiversity - ecosystems, species and genes.

The Departments of Environment and Natural Resources (DENR), Tourism (DOT), Science
and Technology (DOST), Agriculture (DA), Health (DOH), Energy (DOE), Transportation and
Communications (DOTC), Foreign Affairs (DFA), Trade and Industry (DTI), National Defense (DND),
and Interior and Local Government (DILG), the National Economic Development Authority (NEDA),
and all concerned government agencies and offices and local government units shall integrate and
mainstream the protection, conservation and sustainable use of biological diversity into their policies,
rules and regulations, programs, projects and development planning process.

All government agencies, including local government units, shall formulate and submit to DENR,
for monitoring compliance, their respective biological diversity programs. The DENR shall provide
technical assistance to all concerned agencies.

SEC. 2. Role of the Private Sector and Civil Society. Recognizing that the protection, conservation
and sustainable use of biodiversity is a shared responsibility among all sectors, the DENR and all
concerned government agencies and offices shall actively engage and collaborate with the private sector,
civil society, and local communities so that biological diversity goals are incorporated in their respective
programs and activities, including institutionalizing biodiversity conservation as a principal corporate
environmental responsibility. Public participation in protection, conservation and sustainable use
activities, especially at the local level, shall be encouraged to maximize conservation and community
benefits.

SEC. 3. Guidelines on Critical Habitats and Key Biodiversity Areas. To implement the state policy
on biological diversity, the DENR shall, in accordance with law and subject to public consultations,
develop and promulgate rules, and regulations for the establishment of critical habitats within key
biodiversity areas which are known to harbor habitats and ecosystems critical for the survival of
threatened, restricted-range, and congregatory species, and provide the guidelines for their management
and protection. Biodiversity impact assessment shall be integrated into the Environmental Impact
Assessment and the Environmental Risk Assessment Processes, taking into consideration guidelines

MESSAGES OF THE PRESIDENT

ARROYO I Volume 4

adopted under the United Nations Convention on Biological Diversity. Such rules, regulations and
guidelines shall be issued within sixty days from the effectivity of this Order.

SEC. 4. The Presidential Commission for the Integrated Conservation and Development for
the Sulu Celebes Seas. The DENR, as Chairman of the Presidential Commission for the Integrated
Conservation and Development of the Sulu Celebes Seas created in 1997 by Proclamation No. 1028,
otherwise referred to as the Commission, is hereby instructed to immediately undertake the following
tasks, viz: (1) review and update the SSME conservation plan; (2) create and organize an Ad Hoc Task
Force on Verde Island Passage to ensure the protection, conservation and sustainable use of biological
diversity in the Verde Island Passage Marine Corridor; and, (3) identify other marine biodiversity
corridors within the SSME that require urgent attention and formulate appropriate conservation and
management strategies.

The Task Force, which is to be composed of DENR, DOT, DOST, DA, DOH, DOE, DOTC,
DFA, DTI, DND, DILG, NEDA and all local government units shall formulate the Verde Island
Passage Management Plan in consultation with stakeholders, the private sector, civil society and local
communities and shall submit the same to the Commission for approval. In the preparation of the
plan, the Task Force shall take into account existing efforts to protect marine biodiversity, implement
integrated Coastal Management, and conduct disaster risk assessment and management in the Verde
Island Passage Marine Corridor. The Commission shall ensure that the Plan is completed within
120 days from the effectivity of this Order.

SEC. 5. Funding. Starting 2008 and thereafter, the funding requirements shall be included in the
General Appropriations Bill to be submitted to Congress.

All member-departments of the PC-ICDSCS and the TF-VIP are under obligation to fully support
the activities by way of entering into appropriate agreements, as well as sharing financial and technical
resources, among others, to support the Implementation of the SSME Conservation Plan.

SEC. 6. Repeal. All executive orders, rules and regulations and other issuances or parts
thereof, which are inconsistent with this Executive Order, are hereby revoked, amended, or modified
accordingly.

SEC. 7. Separability. - Any portion or provision of this Executive Order that maybe declared
unconstitutional shall not have the effect of nullifying its other portions or provisions, as long as such
remaining portions can still be given effect.

Section 8. Effectivity. - This Executive Order shall take effect fifteen (15) days after its publication
in a national newspaper of general circulation.

DONE in the City of Manila, this 8th day of November, in the year of Our Lord, Two Thousand
and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

OFFICIAL GAZETTE

ARROYO I Volume 4

MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 579

ENCOURAGING THE FORMULATION AND IMPLEMENTATION OF GREEN PHILIPPINES
PROGRAMS THROUGH THE NATIONAL SERVICE TRAINING PROGRAM (NSTP)

WHEREAS, the Philippines is a young nation; our people are young, those under 30 years old
make up sixty-five (65%) percent of the population;

WHEREAS, it is the youth of this nation who have the energy to make their visions come true;

WHEREAS, it is the time for the younger generation to be actively involved in civic life, and be
responsible for their own future;

WHEREAS, the Arroyo Administration is calling for a New Vision for Young Nation;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. The National Service Training Program (NSTP) shall endeavor to build a new
quality of life that will keep the nation young and beautiful. In order to ensure its realization, all
students under NSTP, Reserve Officers’ Training Corps (ROTC), Literacy Training Service (LTS), and
Civic Welfare Training Service (CWTS), shall be involved in Green Philippines Activities which include
among others:

a. ) Taking back our forests and replenishing fallen trees with new, protected forests;

b. ) Beautifying our barangays and cities;

c. ) Building more urban parks and recreation areas;

d. ) Purifying our water;

e. ) Cleaning up industrial sites;

SECTION 2. At least 36 hours per semester or 72 hours in case of one summer program shall be
dedicated for the implementation of the activities enumerated under Section 1 hereof.

SECTION 3. The Chair of the Commission on Higher Education (CHED) shall act as the Lead
Implementor of this Order, assisted by the Chair of the National Youth Commission (NYC).

SECTION 4. The Department of Environment and Natural Resources and the Local Government
Units (LGUs) shall assist the schools in identifying the areas where the Green Philippine Activities of
the NSTP shall be implemented.

SECTION 5. All other executive issuances, orders, rules and regulations or parts thereof
inconsistent with this Executive Order are hereby repealed or modified accordingly.

SECTION 6. This Executive Order shall take effect immediately upon publication in
two (2) newspapers of general circulation and shall be implemented starting on the first (1®') semester
of school year 2007-2008.

MESSAGES OF THE PRESIDENT

ARROYO I Volume 4

DONE in the City of Manila, this 30th day of November, in the year of Our Lord, Two Thousand
and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

OFFICIAL GAZETTE

ARROYO I Volume 4

MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 580

AMENDING EXECUTIVE ORDER NO. 256 DATED 21 DECEMBER 1995 AND
EXECUTIVE ORDER NO. 197 DATED 13 JANUARY 2000 ON THE IMPOSITION
OF ADMINISTRATIVE FINE FOR LOSS OF FIREARM

WHEREAS, Executive order No. 256 dated 21 December 1995, rationalized the fees and charges
on Firearms, Ammunition, Spare Parts, Accessories, Components, Explosives, Explosives Ingredients,
Pyrotechnics and other devices;

WHEREAS, Executive Order No. 197 dated 13 January 2000 directed all Departments,
Bureaus, Commissions, Agencies, Offices and Instrumentalities of the National Government including
government-owned or controlled corporations to increase their rates of fees and charges by not less
than twenty (20) percent and based on this order the Philippine National Police implemented a Revised
Schedule of Fees, including administrative fines for loss of firearms;

WHEREAS, based on the Firearm Information Management System (FIMS) of the Firearms and
Explosives Division, Civil Security Group, 5,399 registered firearms were reported lost by licensed
firearm holders;

WHEREAS, there is a need to impose stiffer administrative fines for loss of firearms in order to
encourage licensed firearm holders to be more conscious in securing their registered firearms to prevent
the same from getting into the hands of terrorists or criminal elements.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order the following:

SECTION 1. The rate of administrative fine for loss of firearm regardless of the type and/or
caliber which is covered by Special Permit (SP) or Certificate of Registration (CR) shall be as follows:

P 5,000 - For each FA lost during the first reported loss of FA;

P10,000 - For each FA during the second reported loss of FA; and

P15,000 - and Permanent Disqualification From Possessing a Firearm

For each FA lost during the third reported loss of FA.

SECTION 2. All citizens of the Philippines who were issued licenses to possess firearm will be
permanently disqualified from possessing firearm of any type and/or caliber after losing a registered
firearm for the third time.

SECTION 3. The Philippine National Police shall issue the necessary rules and regulations to
implement this Order.

SECTION 4. All orders, issuances, rules and regulations or parts thereof inconsistent with this
Executive Order are hereby repealed or modified accordingly.

SECTION 5. This Executive Order shall take effect fifteen (15) days following its publication in a
national newspaper of general circulation.

MESSAGES OF THE PRESIDENT

ARROYO I Volume 4

Done in the City of Manila, this 21st day of November, in the year of Our Lord, Two Thousand
and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

OFFICIAL GAZETTE

ARROYO I Volume 4

MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 581

SEGREGATING THE OCCUPIED PORTION OF THE DOST-REGION VII PROPERTY LOCATED
IN BARANGAY LAHUG, CEBU CITY AND DECLARING THE SAME AS ALIENABLE AND
DISPOSABLE TO BENEFIT MEMBERS OF THE DRI RIVERBED
HOMEOWNERS ASSOCIATION (DRIHOA)

WHEREAS, Section 8 of Republic Act (RA) 7279, otherwise known as the Urban Development
and Housing Act (UDHA) of 1992, mandates that government-owned lands which have not been used
for the purpose for which they were intended for the past ten (10) years from its effectivity may be
disposed of for socialized housing purposes;

WHEREAS, the national government or any of its subdivisions, instrumentalities, or agencies,
including GOCCs and their subsidiaries are directed under Paragraph 3, Section 2, of EO 131, to give
full support and cooperation to HUDCC in the disposition of government-owned lands defined in
Section 8 of the Urban Development and Housing Act (UDHA) of 1992;

WHEREAS, the Department of Science and Technology (DOST) has certified that the 38 bona
fide occupants belonging to DRI Riverbed Homeowners Association (DRIHOA) have been occupying
the 2,213-sqm portion of DOST’s 10,000-sqm property in Barangay Lahug, Cebu City for more than
twenty (20) years now, even before subject property was acquired;

WHEREAS, DOST has further certified that the occupied portion is impractical to the needs of
the Department, while the Department of Health (DOH) certified that the occupied portion is suitable
for socialized housing purposes to benefit the members of DRIHOA;

WHEREAS, the DOST has certified that disposing the occupied portion will redound to the
benefit of both the government and the bona fide occupants because it will eradicate the presence
of squatters within their remaining property and at the same time regularize the tenure of DRIHOA
members;

WHEREAS, the Office of the City Planning and Development Coordinator of Cebu City has
certified that the occupied portion is not within the flood prone area nor affected by any of its planned
projects.

NOW, THEREFORE, I, GLORIA MACAPAGAL - ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. DOST, with the assistance of HUDCC, shall effect the disposition of the occupied
portion with an area of two thousand two hundred thirteen (2,213) square meters located in Barangay
Lahug, Cebu City to the bona fide occupants thereat.

SEC. 2. A Local Inter-Agency Committee (LIAC) shall be created to formulate the guidelines and
to oversee the implementation of the project, composed of the Department of Science and Technology
as Chair, the Housing and Urban Development Coordinating Council (HUDCC) as Co-Chair, and the
Local Government Unit (LGU) of Cebu City, the Department of Environment and Natural Resources

MESSAGES OF THE PRESIDENT

ARROYO I Volume 4

(DENR), the National Housing Authority (NHA), the Presidential Commission for the Urban Poor
(PGUP), and a representative of the People’s Organization (PO) in the area, as members.

SEC. 3. The DOST is hereby authorized to enter into appropriate project schemes and contractual
arrangements, subject to existing rules and regulations, in the implementation and development of the
subject property.

SEC. 4. The DOST is further authorized to provide the funds for the various activities required to
implement this Executive Order, including site development and other requirements.

SEC. 5. In the event that any provision hereof is declared invalid by any competent court of
tribunal, the other provisions hereof unaffected thereby shall remain in full force and effect.

SEC. 6. This Executive Order shall take effect immediately.

Done in the City of Manila, this 8th day of December, in the year of Our Lord, Two Thousand
and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

OFFICIAL GAZETTE

ARROYO I Volume 4

MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 582

STREAMLINING THE PROCESS OF AUTHENTICATING DOCUMENTS INTENDED FOR USE
ABROAD AND TRANSFERRING THE AUTHENTICATION OFFICE FROM THE OFFICE OF
THE PRESIDENT TO THE DEPARTMENT OF FOREIGN AFFAIRS

WHEREAS, it is the policy of the government to reduce red tape by streamlining processes and
eliminating duplicative cross-agency activities:

WHEREAS, both the Office of Consular Affairs (OCA) of the Department of Foreign Affairs
(DFA) and the Authentication Office of the Office of the President (AO-OP) perform similar
authentication functions;

WHEREAS, Chapter 1, Article 5, sub-article (F) of the Vienna Convention on Consular Relations
and Optional Protocols of which the Philippines is a signatory of this Convention provides that a given
state’s consular office shall act “as notary and civil registrar and in capacities of a similar kind, and
performing certain functions of an administrative nature”;

WHEREAS, Executive Order (EO No. 292 s. 1987) mandates the Department of Foreign Affairs
to serve as the official channel for foreign relations, including official communications to and from the
Republic of the Philippines, and carry out legal documentation functions under pertinent laws and
regulations, among others;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law do hereby order:

Sec. 1. Responsibility for Authentication. The DFA-OCA is hereby mandated to be the agency
solely responsible for authenticating documents certified as authentic by the issuing agency office.

In this regard, the AO-OP is hereby directed to transfer to the DFA-OCA all equipments, furniture,
materials, pertinent documents and other facilities necessary for the operations of authentication
function.

Sec. 2. Detail of OP Personnel. The AO-OP personnel shall be detailed to the DFA-OCA for a
maximum of six (6) months in order for the DFA-OCA to acquire the necessary competence to carry
out the authentication process according to the service standards set by the one day authentication
process of the AO-OP. After this transition period, personnel detailed from the AO-OP to the DFA-
OCA shall have the option to stay in the DFA-OCA or avail of early retirement privileges.

Sec. 3. Accrual of Proceeds. Revenues collected or receipts of any kind from the streamlined
authentication process shall be remitted to or deposited intact with the National Treasury. The DBM
shall, however, allocate an appropriate amount, proposed by the DFA-OCA, for the operations of the
office.

Sec. 4. Continuing Research. The DFA, in coordination with concerned government agencies,
shall conduct continuing research for further improvements of the authentication process.

MESSAGES OF THE PRESIDENT

ARROYO I Volume 4

Sec. 5. Rules and Regulations. The DFA Secretary shall issue rules and regulations to implement
this Executive Order.

Sec. 6. Repealing Clause. Letter of Instruction (LOI) 1446 s. 1985, and other issuances or parts
thereof which are inconsistent with this order are hereby repealed, amended or modified accordingly.
Sec. 7. Effectivity. This Executive Order shall take effect immediately.

Done in the City of Manila this 4th day of December, in the year of our Lord, Two Thousand and
Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

OFFICIAL GAZETTE

ARROYO I Volume 4

MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 582-A

AMENDING EXECUTIVE ORDER NO. 582 DATED 4 DECEMBER 2006, ENTITLED
“STREAMLINING THE PROCESS OF AUTHENTICATING DOCUMENTS INTENDED FOR USE
ABROAD AND TRANSFERRING THE AUTHENTICATION OFFICE FROM THE OFFICE OF
THE PRESIDENT TO THE DEPARTMENT OF FOREIGN AFFAIRS”

WHEREAS, Executive Order No. 493 (EO 493) dated 05 January 1978, issued pursuant to the
legislative power of then President Ferdinand Marcos, authorized the Office of the President to charge
authentication fees;

WHEREAS, Batas Pambansa Big. 325 (BP 325) dated 27 December 1982 authorized the Office
of the President, inter alia to revise such fees and charges, sufficient to cover administrative costs;

WHEREAS, Letter of Instructions No. 1446 (LOI 1446), dated 23 January 1985, issued pursuant
to the legislative power of then President Ferdinand Marcos, mandated that authentication fees
collected by the Office of the President pursuant to EO 493 and BP 325 are hereby set aside as a trust
fund for the exclusive use of the Office of the President;

WHEREAS, Executive Order No. 582 (EO 582) dated 4 December 2006, entitled “Streamlining
the Process of Authenticating Documents Intended for Use Abroad and Transferring the Authentication
Office from the Office of the President to the Department of Foreign Affairs” mandated the Office of
Consular Affairs of the Department of Foreign Affairs (DFA, OCA) to be the agency responsible for
authenticating documents;

WHEREAS, EO 582, dated 4 December 2006 further provides that revenues collected or receipts
of any kind from the streamlining authentication process shall be remitted to or deposited intact with
the National Treasury and that the Department of Budget and Management (DBM) shall allocate an
appropriate amount, proposed by the DFA-OCA, for the operations of the Office;

WHEREAS, EO 582, dated 4 December 2006 being an Executive Issuance, may not directly
repeal or amend EO 493, dated 5 January 1978 and LOI 1446, dated 23 January 1985 both issued
pursuant to the legislative power of then President Ferdinand Marcos;

WHEREAS, there is a need to harmonize the provisions of EO 582, dated 4 December 2006 with
the provisions of EO 493, dated 5 January 1978 and LOI 1446, dated 23 January 1985, as well as
BP 325, dated 27 December 1982.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law do hereby order:

SECTION 1. Amendment of EO 582, dated 4 December 2006. - Section 3 of EO 582, dated 4
December 2006 is hereby amended as follows:

“SEC. 3. Proceeds from Authentication Fees. -Revenues collected or receipts of any

kind from the streamlined authentication process shall accrue to the OP Trust Fund for the

exclusive use of the Office of the President (OP) pursuant to Fetter of Instruction No. 1446,

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ARROYO I Volume 4

dated 23 January 1985. The amount necessary for the operations of the DFA-OCA shall be
provided in the regular budget of the DFA.“

SEC. 2. Effectivity.-This Executive Order shall take effect immediately.

Done in the City of Manila, this 1st day of March, in the year of Our Lord, Two Thousand and

Ten.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2010). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

OFFICIAL GAZETTE

ARROYO I Volume 4

MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 583

ESTABLISHING THE NATIONAL SCIENCE COMPLEX AND TECHNOLOGY INCUBATION
PARK IN THE UNIVERSITY OF THE PHILIPPINES, DILIMAN

WHEREAS, Article XIV, Section 10 of the Constitution provides that “x x x The state shall give
priority to research and development, invention, innovation, and their utilization; and to science and
technology education, training, and services x x x.”;

WHEREAS, efforts to support and strengthen our scientific and technological capabilities
and their application to our country’s productive systems and national life require complementary
initiatives in generating new scientific knowledge and technology, technology transfer and diffusion,
and technology utilization and management;

WHEREAS, all these efforts presuppose the availability of highly trained manpower to lead and
direct scientific and technological activities in the academe, the private sector, and the government;

WHEREAS, the University of the Philippines, demonstrating competence and availability of core
scientific personnel, national centers of excellence, intellectual resources, and academic and research
infrastructure, is in the best position to harness and organize State Universities and Colleges (SUCs),
private universities, other private and public academic institutions, industry, government agencies, and
other sectors, in order to serve as the national hub for the generation and application of new scientific
knowledge in the natural and applied sciences and mathematics;

WHEREAS, the University of the Philippines, with the assistance of the aforementioned
institutions and sectors, has the capability of supplying competent manpower and technical support for
the UP S&T Park and its component Technology Business Incubators (TBIs);

WHEREAS, the University of the Philippines and its S&T Park can potentially serve as a model
for other technology parks in the country;

WHEREAS, in a meeting of the UP Board of Regents on September 29, 2006, the establishment of
the National Science Complex in UP Diliman has been approved and has authorized the UP President
to seek support from the government on this endeavor;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. The National Science Complex. - The National Science Complex and Technology
Incubation Park is hereby established in a 21.9 hectare area of the southern sector of the University of
the Philippines, Diliman, which shall be composed of the following Member Institutes:

a. National Institute of Geological Sciences (NIGS)

b. Marine Science Institute (MSI)

c. National Institute of Physics (NIP)

d. National Institute of Molecular Biology and Biotechnology (NIMBB)

e. Institute of Biology (IB)

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ARROYO I Volume 4

f. Institute of Chemistry (IC)

g. Institute of Environmental Science and Meteorology (lESM)

h. Department of Mathematics (DM)

i. Natural Science Research Institute (NSRI)

SECTION 2. Management, Operation and Institution of the National Science Complex
and Technology Incubation Park. - The UP Board of Regents is hereby authorized to organize the
abovementioned institutes, and such other additional institutes, centers, departments and laboratories
in the future which it may deem proper to create, utilizing the staff, physical facilities and programs of
the University and its constituent units as appropriate. It shall issue such rules regulations and other
issuances as may be necessary to ensure the effective implementation of this Executive Order.

SECTION 3. Appropriations. - The appropriation for the infrastructure of the National Science
Complex and Technology Incubation Park, as authorized under Republic Act No. 9358, approved on
October 16, 2006, to supplement the EY 2006 Budget, under Section 1, C, C.l thereof, in the amount
of Five Hundred Million Pesos (PhP500,000,000.00) shall be released to UP by the Department of
Budget and Management (DBM) in accordance with budgeting laws, rules and regulations.

SECTION 4. Repealing Clause. - All other executive issuances, rules and regulations or parts
thereof which are inconsistent with the provisions of this Executive Order are hereby repealed,
amended or modified accordingly.

SECTION 5. Effectivity. - This Executive Order shall take effect immediately.

DONE, in the City of Manila, on this 8th day of December, in the year of our Lord, Two
Thousand and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacahang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501 - 600]. Manila:
Malacahang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 584

PROMULGATING THE SEVENTH REGULAR FOREIGN INVESTMENT NEGATIVE LIST

WHEREAS, Republic Act No. 7042, otherwise known as the Foreign Investments Act of 1991,
as amended by RA 8179, provides for the formulation of a Regular Foreign Investment Negative
List covering investment areas/activities which may be opened to foreign investors and/or reserved to
Filipino nationals;

WHEREAS, the Regular Foreign Investment Negative List, consisting of Lists A and B, is effective
for two (2) years pursuant to Section 8 of RA 7042 (as amended) and its revised Implementing Rules
and Regulations;

WHEREAS, there is a need to formulate a Seventh Regular Foreign Investment Negative List in
view of the expiration of the existing list on January 6, 2007;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Only the investment areas or activities listed in Annex A hereof shall be reserved
to Philippine nationals, and hereafter shall be referred to as the Seventh Regular Foreign Investment
Negative List. The extent of foreign equity in these areas shall be limited to the percentages indicated in
the List.

SECTION 2. Any amendment to List A may be made at any time to reflect changes instituted
in specific laws while amendments to List B shall not be made more often than once every two years,
pursuant to Section 8 of RA 7042 (as amended) and its revised Implementing Rules and Regulations.

SECTION 3. All orders, issuances, rules and regulations or parts thereof, which are inconsistent
with this Order are hereby revoked or modified accordingly.

SECTION 4. This Executive Order shall take effect upon the expiration of the Sixth Regular
Foreign Investment Negative List on January 6, 2007 following its publication in a national newspaper
of general circulation.

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Done in the City of Manila, this 8th day of December, in the year of Our Lord, Two Thousand
and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Reference: “Annex A”

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

102

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 585

PROVIDING FOR THE SURRENDER AND LICENSING OF LOOSE FIREARMS AND THE
UTILIZATION OF FUNDS FROM THE PROCEEDS THEREOF

WHEREAS, despite the issuance of Executive Order Nos. 171 and 390, an estimated 304,262
loose firearms remain to be accounted and licensed;

WHEREAS, it is consistent with the national interest that these loose firearms be submitted for
licensing and the holders of loose firearms be encouraged and given an opportunity to obtain the
required firearm license;

WHEREAS, the purpose of the registration and licensing of loose firearms will be accomplished if
the appropriate technology and resources are made available to exploit the firearm ballistic data bank;

WHEREAS, it is the policy of the state to encourage the use of IT resources by governmental
entities and offices in the delivery of services to the public;

WHEREAS, Executive Order 171 was approved on January 22, 2003 to address these issues but
its implementation was limited due to the COMELEC imposed gun ban during the election period of
2004;

WHEREAS, Executive Order 171 was extended thru Executive Order 390 but the duration was
limited only to seven months;

WHEREAS, there is a need to implement another firearm amnesty program to license all loose
firearms in the possession of natural and juridical persons who were not able to take advantage of
E0 171 and EO 390.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Any natural and juridical person who possess loose firearms may surrender the
same to the Philippine National Police for custody and apply for the corresponding license as required
by existing laws within one (1) year from the effectivity of this Order, excluding the election period
(January 14, 2007 to June 13, 2007), which was declared by the COMELEC pursuant to COMELEC
Resolution 7707. Concerned holders of said firearms may avail of this amnesty only within the period.
Each firearm submitted for licensing shall have its own distinct firearm description.

SECTION 2. As a general rule, high-powered rifles/paltik firearms may not be allowed for
licensing. However, the Chief, PNP may allow the licensing of some high-powered firearms. Those who
will surrender the same will not be prosecuted for illegal possession of firearm while in the act of
surrendering the said firearms.

SECTION 3. An amnesty fee of Three Thousand Pesos (3,000.00) for High Powered Firearms
and Two Thousand Pesos (P2,000.00) for Low Powered Firearms, shall be collected for each firearm
registered.

SECTION 4. Fees collected in Section 3, thereof, shall be treated as a Trust Liability and
deposited in a Special Account in an Authorized Government Depository Bank (AGDB) to support

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the nation-wide implementation of the Firearms Information Management System (FIMS), Firearms
Records Management System and the Firearms Ballistic Information System in the priority and, any
unexpended balance therefrom, shall be reverted to the General Fund.

SECTION 5. The Firearms and Explosives Division (FED), Civil Security Group (CSG), the
Regional Offices and the Provincial/City Police Offices of the PNP involved in the processing and
registration of loose firearms shall retain 20% of the gross proceeds of the collection to support their
respective direct costs of licensing operation.

SECTION 6. The Chief, PNP shall issue such Implementing Rules and Regulations (IRR) that
will effectively carryout the provisions of the Executive Order subject to the approval/concurrence of
the Secretary of the Interior and Local Government.

SECTION 7. All orders, issuances, rules and regulations or parts thereof inconsistent with this
Executive Order are hereby repealed or modified accordingly.

SECTION 8. This Order shall take effect immediately.

DONE in the City of Manila, this 11th day of Decmber, in the year of Our Lord, Two Thousand
and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacahang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501 - 600]. Manila:
Malacahang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 5 85 -A

AMENDING EXECUTIVE ORDER NO. 585, SERIES OF 2006, BY EXTENDING THE PERIOD
OF REGISTRATION OF FIREARMS AND INCREASING THE AMNESTY FEES FOR THE
SURRENDER AND LICENSING OF LOOSE FIREARMS

WHEREAS, Executive Order (EO) No. 585 dated December 11, 2006 provided for the surrender
and licensing of loose firearms and the utilization of funds from the proceeds thereof;

WHEREAS, the implementation of EO No. 585 (2006) was delayed due to the national elections
last May 14, 2007;

WHEREAS, the increase in amnesty fees will generate additional revenue that will augment the
modernization of equipment in the Civil Security Group of the Philippine National Police and further
facilitate investigation of crimes committed with firearms;

WHEREAS, the volume of projected and targeted number of loose firearms to be registered
through the amnesty program demands for a reasonable period of time in order to provide allowance
to those prospective registrant in remote areas, thereby necessitating the extension of the one-year
period of registration to be reckoned from the effectivity of this order.

NOW, THEREFORE, I, GLORIA MACAPAGAL ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

Section 1. Sections 1 and 3 of Executive Order No. 585, dated December 11, 2006, are hereby
amended as follows:

“SECTION 1. Any natural and juridical person who possesses loose firearms
may surrender the same to the Philippine National Police for custody and apply for the
corresponding license as required by existing laws within one (1) year from the effectivity
of this Order. Concerned holders of said firearms may avail of this amnesty only within the
period. Each firearm submitted for licensing shall have its own distinct firearms description^
“SECTION 3. An amnesty fee of Five Thousand Pesos (P5, 000.00) for High Powered
Firearms and Three Thousand Pesos (P3,000.00) for Low Powered Firearms shall be
collected for each firearm registered.”

Section 2. All executive orders, rules and regulations and other issuance or parts thereof, which
are inconsistent with this Executive Order, are hereby revoked, amended, or modified accordingly.

Section 3. This Executive Order shall take effect fifteen (15) days after its publication in a national
newspaper of general circulation.

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DONE in the City of Manila, this 28th day of August, in the year of Our Lord, Two Thousand
and Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 586

TRANSFERRING THE PHILIPPINE RECLAMATION AUTHORITY (PRA) FROM THE
DEPARTMENT OF FINANCE TO THE DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS

WHEREAS, pursuant to Executive Order No. 380, series of 2004, the Philippine Reclamation
Authority (PRA) is tasked to develop, improve, administer, deal in, subdivide, dispose, lease, and sell all
kinds of lands, buildings, estates and other forms of real property owned, managed, controlled and/or
operated by the government, and thus, hold assets in behalf of the National Government;

WHEREAS, PRA is further mandated to convert underutilized government land into income-
generating real estate properties and deliver projects and services related to land development and
urban renewal;

WHEREAS, reclamation, land development and urban renewal are basically public works
projects;

WHEREAS, Section 31, Chapter 10, Title III, Book III, of the Administrative Code of 1987, grants
to the President continuing authority to reorganize the government.

NOW, THEREFORE, I, GLORIA MACAPAGAL ARROYO, President of the Philippines, by
virtue of the powers vested in me by law, do hereby order:

Section 1. The Philippine Reclamation Authority is hereby transferred from the Department of
Finance (DOF) to the Department of Public Works and Highways (DPWH).

Section 2. All orders, issuances, rules and regulations or parts thereof which are inconsistent with
this Executive Order are hereby repealed or modified accordingly.

Section 3. This Executive Order shall take effect fifteen (15) days after its publication in a national
newspaper of general circulation.

Done in the City of Manila, this 8th day of December, in the year of our Lord, Two Thousand
and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 587

DIRECTING DTI TO ESTABLISH AND ADMINISTER THE PHILIPPINE
BUSINESS REGISTRY (PBR) PROJECT

WHEREAS, Section 29 of Republic Act No. 8792 or the “Electronic Commerce Act“, approved
by the President on 14 June 2000, gives the Department of Trade and Industry the authority to direct
and supervise the promotion and development of electronic commerce in the country with relevant
government agencies;

WHEREAS, the two salient provisions of the Electronic Commerce Act are Section 27
(Government Use of Electronic Data Messages, Electronic Documents and Electronic Signatures) and
Section 28 (RPWEB to Promote the Use of Electronic Documents and Electronic Data Messages in
Government and to the General Public);

WHEREAS, the Philippine Business Registry (PBR) system will facilitate a seamless transactional
environment for business registration and development across the application systems of various
government agencies such as but not limited to the Securities and Exchange Commission (SEC),
Department of Trade and Industry (DTI), Bureau of Internal Revenue (BIR), Social Security System
(SSS), and Philippine Health Insurance Corporation (PhilHealth);

WHEREAS, Executive Order No. 428 issued on 18 May 2005, directs Departments, Bureaus,
Offices and other Agencies in the Executive Branch, including Government-Owned and Controlled
Corporations to simplify rules and regulations and reduce reportorial requirements to facilitate doing
business and encourage more investments in the country;

WHEREAS, Executive Order No. 557 issued on 08 August 2006, establishes an Anti-Red Tape
Task Force chaired by the DTI Secretary, the objective of which is to immediately remove national
government bottlenecks, particularly those that hinder the securing of necessary permits in starting up
private businesses;

WHEREAS, the PBR will evolve into a business facilitation platform that is envisioned to increase
commercial activities within and outside the country;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. The Secretary of Trade and Industry is hereby directed to establish and administer
comprehensive and integrated programs for business registration and facilitation at the national,
regional and local levels with due consideration to advances in convergence and other emerging
technologies. For this purpose, he may call on any agency, corporation or organization, whether public
or private, whose development programs in business registration and facilitation are an integral part
thereof, to participate and assist in the preparation and implementation of such programs. Technical
Working Groups (TWGs) may also be created to address specific issues and concerns.

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SECTION 2. The Secretary of Trade and Industry shall formulate and recommend national
policies and guidelines that will promote business registration and facilitation with both public and
private sectors. For this purpose he shall consult the -

1. Chairman, Securities and Exchange Commission (SEC)

2. Commissioner, Bureau of Internal Revenue (BIR)

3. Commissioner, Bureau of Customs (BOC)

4. President and Chief Executive Officer, Social Security System (SSS)

5. Administrator, National Statistics Office (NSO)

6. President and Chief Executive Officer, Philippine Health Insurance Corporation (PhilHealth)

7. Secretary, Department of the Interior and Local Government (DILG)

8. President, Philippine Chamber of Commerce and Industry (PCCI)

SECTION 3. The Secretary of Trade and Industry shall perform such other powers and functions
as may be prescribed by law or as may be necessary, incidental or proper to pursue its mandate or as
may be assigned from time to time by the President. He shall submit a periodic report of its activities to
the President.

SECTION 4. To carry out the provisions of this Order, funds for the necessary expenses for the
operations of the PBR shall come from Philippine Business Registry (PBR) project funds administered
by the Department of Trade and Industry subject to existing accounting and auditing rules and
regulations.

SECTION 5. This Order shall take effect immediately.

DONE in the City of Manila, this 8th day of December, in the year of Our Lord, Two Thousand
and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501
Malacanang Records Office.

600]. Manila:

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 588

STRENGTHENING THE PHILIPPINE SHIP BUILDING AND SHIP REPAIR SECTOR AND
INSTITUTING MEASURES TO PROMOTE ITS GROWTH AND DEVELOPMENT

WHEREAS, the government has committed itself, as embodied in the President’s Ten-Point
Legacy Program, to create six (6) to ten (10) million jobs and to encourage investments in preferred
areas of activity;

WHEREAS, the Medium Term Philippine Development Plan of 2004 - 2010 and the Investment
Priorities Plan of 2006 have identified ship building and ship repair as among the areas where the
Philippines has natural and human resource advantage;

WHEREAS, Republic Act (RA) No. 9295 encourages the development of a viable ship building
and ship repair sector supportive of the shipping industry;

WHEREAS, the accelerated and sustained development of the ship building and ship repair sector
requires the joint and active collaboration between the government and the private sector as shown by
even the most developed countries in the world;

WHEREAS, RA 8042 provides that the State shall continuously create local employment
opportunities and promote the equitable distribution of wealth and benefits of development;

WHEREAS, there is a need to attract and maintain much needed investments for the development
of ship building and ship repair sector in view of its capacity to contribute to the country’s economic
output, its strategic significance given the archipelagic nature of the Philippine geography, and its
potential to open up vast opportunities for employment and skills training for Filipinos;

WHEREAS, Section 3, Article XIII of the Constitution recognizes the right business enterprises to
adopt and enforce such policies necessary to protect the right to reasonable returns on investments and
to expansion and growth;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Development of the Philippine Ship Building and Ship Repair Sector. The growth
and development of the Philippine ship building and ship repair sector shall be a key component of the
government’s continuing industrial development program in accordance with the President’s Ten-Point
Agenda.

The entry and maintenance of foreign and local investment in the Philippine ship building
and ship repair sector shall enjoy the government’s full support in view of its capability to generate
employment opportunities, modernize the country’s industrial sector, and improve productivity levels
through the use of new technological and managerial know-how.

SECTION 2. Training, Development and Employment of Filipinos. The training, development
and continued employment of Filipino citizens in duly registered entities engaged in ship building and
ship repair within the country shall form part of the government’s effort to promote investment in the
Filipino towards a world class and competitive industry.

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The “FILIPINO INVESTING IN THE PHILIPPINES” Program is hereby launched effective
immediately and to last for five (5) years thereafter, wherein the conduct by duly registered entities
engaged in ship building and ship repair of free skills-training and development for Filipino citizens
in consideration of the latter’s continued and exclusive employment in the said entities shall be
encouraged and promoted in accordance with existing laws, rules and regulations. Filipino workers
who participated in the free skills-training and development conducted by duly registered entities
engaged in ship building and ship repair are likewise encouraged to faithfully adhere to their
contractual commitments with the entities under the program. Accordingly, overseas deployment or
changes in employment in the breach of contract by said Filipino workers shall be considered acts
inimical and greatly prejudicial to the national interest.

Filipino workers who participated in the free-skills training and development programs of, and
are subsequentialy employed by, duly registered entities engaged in ship building and ship repair in the
Philippines, shall be entitled to such incentives as may be provided by law.

SECTION 3. Right to Guard Trade Secrets, Confidential Programs and Information. Subject to
the provisions of existing laws, the right of duly registered entities engaged in a ship building and
ship repair to adopt reasonable employment policies to effectively guard their respective trade secrets,
manufacturing formulas, strategies and other confidential programs and information from competitors,
both local and foreign, is hereby recognized.

SECTION 4. Ad Hoc Committee. An Ad Hoc Committee is hereby established to immediately
formulate a comprehensive development plan for the ship building and ship repair sector under such
terms and conditions as would stimulate and be consistent with the progressive development thereof.
The Committee shall be chaired by the Maritime Industry Authority (MARINA) Administrator, with
representatives from the following agencies as members:

National Economic and Development Authority (NEDA)

Department of Finance (DOF)

Department of Justice (DOJ)

Department of Trade and Industry (DTI)

Department of Labor and Employment (DOLE)

Department of Public Works and Highways (DPWH)

Department of Environment and Natural Resources (DENR)

Philippine Economic Zone Authority (PEZA)

Subic Bay Metropolitan Authority (SBMA)

Philippine Coast Guard (PCG)

The Committee shall submit such program within sixty (60) days from effectivity of this Executive
Order.

SECTION 5. Institutional Assistance and Support. To the extent permitted by law, all concerned
government agencies, bureaus, and all instrumentalities shall assist duly registered entities engaged
in ship building and ship repair in the Philippines in availing of all applicable fiscal and non-fiscal
incentives, including registration as a preferred pioneer industry under the Board of Investments (BOI).

The NEDA, DOF, DOJ, DTI, DOLE, DPWH, DENR, MARINA, PEZA, SBMA, PCG, and all
other concerned government agencies, bureaus, and instrumentalities are hereby directed to provide the
necessary cooperation and support, including appropriate administrative and institutional assistance to
duly registered entities engaged in ship building and ship repair, and their respective Filipino trainees
and employees, to ensure the timely and effective implementation of this Executive Order.

MESSAGES OF THE PRESIDENT

ARROYO I Volume 4

SECTION 6. Separability Clause. Any portion or provision of this Executive Order that may be
declared unconstitutional shall not have the effect or nullifying other portions and provisions of the
Order for as long as such remaining portions can still subsist and be given effect.

SECTION 7. Repeal. All presidential issuances, administrative rules and regulations or parts
thereof, which are inconsistent with this Executive Order are hereby revoked or modified accordingly.

SECTION 8. Effectivity. This Executive Order shall take effect immediately.

Done in the City of Manila this 8th day of December, in the year of Our Lord, Two Thousand
and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501
Malacanang Records Office.

600]. Manila:

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 588-A

AMENDING EXECUTIVE ORDER NO. 588 ENTITLED “STRENGTHENING THE PHILIPPINE
SHIP BUILDING AND SHIP REPAIR SECTOR AND INSTITUTING MEASURES TO PROMOTE

ITS GROWTH AND DEVELOPMENT”

WHEREAS, on 08 December 2006, Executive Order 588 was issued to bolster the Arroyo
Administration’s resolve, as embodied in the Ten-Point Legacy Program, to create six (6) to ten (10)
million jobs and to encourage investments in preferred areas of activity, including the shipping industry;

WHEREAS, under E.O. 588, the “Filipino Investing in the Philippines” Program was launched
and will expire five (5) years after the effectivity of the said E.O;

WHEREAS, there is a need to extend the duration of the Program in order to sustain the training,
development and continuing employment of qualified Filipino citizens in duly registered entities
engaged in ship building and ship repair;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

Section 1. Amendment of Executive Order No. 588. - Section 2, paragraph 2, of Executive Order
No. 588 is hereby amended, thus:

Section 2. Training, Development and Employment of Filipinos.

“xxx XXX XXX

The “Filipino Investing in the Philippines” Program is hereby launched effective
immediately and to last for ten (10) years thereafter, wherein the conduct by duly registered
entities engaged in ship building and ship repair of free skills-training and development for
Filipino citizens in consideration of the latter’s continued and exclusive employment in the
said entities shall be encouraged and promoted in accordance with existing laws, rules and
regulations. Filipino workers who participated in the free skills-training and development
conducted by duly registered entities engaged in ship building and ship repair are likewise
encouraged to faithfully adhere to their contractual commitments with the entities under
the program. Accordingly, overseas deployment or changes in employment in the breach of
contract by said Filipino workers shall be considered acts inimical and greatly prejudicial to
the national interest.

xxx xxx xxx.”

Section 2. Repeal. - All Presidential issuances, administrative rules and regulations or parts
thereof, which are inconsistent with this Executive Order are hereby revoked or modified accordingly.

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Section 3. Effectivity. - This Executive Order shall take effect immediately.

DONE, in the city of Manila, this 27th day of July, in the year of our Lord, Two Thousand and
Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 589

EXEMPTING EXPORTERS JOINING INTERNATIONAL TRADE FAIRS, EXHIBITIONS,
SELLING MISSIONS, AMONG OTHERS, FROM PAYING THE TRAVEL TAX

WHEREAS, Republic Act (RA) No. 7844, otherwise known as the Export Development Act of
1994, provides, in Section 2, that the State shall evolve export development into a national effort as a
policy;

WHEREAS, RA No. 7844 strengthened and institutionalized the Export Development Council
(EDC) to approve and oversee the implementation of the Philippine Export Development Plan (PEDP);

WHEREAS, the PEDP prescribes the strategies to develop and promote the exports of Philippine
products and services in the international market;

WHEREAS, the PEDP identifies the participation in international trade fairs, exhibitions,
outbound business matching and selling missions as export promotion strategies, and also identifies the
conduct of bilateral and multilateral trade engagements as means to gain market access;

WHEREAS, in order to implement these strategies, exporters have to travel to join trade fairs,
exhibitions and missions; act as resource persons in trade negotiations; attend seminars and speaking
engagements; and act as buying agents to support, promote and market Philippine export products in
the global market;

WHEREAS, Section 2 of Executive Order No. 283, dated July 25, 1987, authorizes the President
to exempt certain sectors from the payment of the travel tax for reasons of national interest.

NOW, THEREFORE, I, GLORIA MACAPAGAL ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Exempt Purposes. - In view of the importance of exports to the economic growth of
the country, exporters shall be exempted from the payment of travel tax whenever they travel for the
following purposes:

a. Participation in outbound or offshore business matching and selling missions organized or
duly endorsed by the Bureau of Export Trade Promotion (BETP) of the Department of Trade
and Industry (DTI);

b. Attendance in international trade fairs and exhibitions organized or duly endorsed by the
Center for Trade Expositions and Missions (CITEM) of the DTI, the Export Development
Council (EDC), or the accredited umbrella organization of exporters;

c. Participation as official members of the Philippine delegation to trade negotiations and
international conferences duly endorsed by the Bureau of International Trade Relations (BITR)
of the DTI;

d. Participation of agents or office representatives of buyers in promotion and marketing
activities of Philippine export products in the international markets;

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e. Attendance in seminars pertaining to technology, productivity, and competitiveness
enhancement duly endorsed by DTI; and

f. Participation in international conferences relevant to international trade duly endorsed by the
DTI.

SEC. 2. EDC Endorsement. - Request for availment of this exemption and the processing and
issuance of the appropriate certificates shall be endorsed by the EDC upon recommendation of BETP,
CITEM or the EDC-accredited umbrella organization of exporters.

SEC. 3. Procedure. - The procedure for availing of Travel Tax Exemption for exporters shall be as
follows:

a. Exporter secures a Recommendation for Travel Tax Exemption from the relevant organization
such as the EDC-accredited umbrella export organization, its nearest regional chapter, BETP,
CITEM or BITR.

b. The relevant organization approves and issues the Recommendation and submits it to the
EDC Secretariat.

c. The EDC Secretariat endorses the Recommendation to the Philippine Tourism Authority
(PTA).

d. The exporter proceeds to the PTA to claim the Travel Tax Exemption Certificate which will be
presented to the carrier or its agent issuing the ticket.

SEC. 4. Limit. - The total Travel Tax Exemption granted for this purpose shall not exceed Twenty
Million Pesos (P20M) annually.

SEC. 5. Separability. - Any portion or provision of this Executive Order that may be declared
unconstitutional shall not have the effect of nullifying its other portions or provisions, as long as such
remaining portions can still be given effect.

SEC. 6. Repeal. - All executive orders, rules and regulations and other issuances or parts
thereof, which are inconsistent with this Executive Order, are hereby revoked, amended, or modified
accordingly.

SEC. 7. Effectivity. - This Executive Order shall take effect immediately after its publication in a
national newspaper of general circulation.

DONE in the City of Manila, this 8th day of December, in the year of Our Lord, Two Thousand
and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 590

DEACTIVATING THE ARMED FORCES OF THE PHILIPPINES RETIREMENT AND
SEPARATION BENEFITS SYSTEM BY 31 DECEMBER 2006, DIRECTING THE TRANSFER OF
ITS ASSETS IN TRUST TO A GOVERNMENT FINANCIAL INSTITUTION,

AND FOR OTHER PURPOSES

WHEREAS, the Armed Forces of the Philippines (“AFP”) Retirement and Separation Benefits
System (“RSBS” or “System”) was established under Presidential Decree No. 361 issued on 30 December
1973 (PD 361) to provide the funding scheme for the payment of retirement and separation benefits
provided under existing laws to military personnel of the AFP;

WHEREAS, under Section 5 of PD 361, as amended by Presidential Decree No. 1656 issued on
21 December 1979 (PD 1656), the funds of the RSBS shall be allowed to grow to be able to provide
perpetually the cash requirement covering the retirement and separation benefit payments to military
personnel on a self-sustaining basis, and that prior to the time when perpetual self-sufficiency of
the funds of the RSBS is attained as determined by actuarial valuation, the yearly requirement for
retirement and separation benefits of military personnel as provided under existing laws shall be fully
funded out of the annual appropriations for the AFP;

WHEREAS, in the Senate Blue Ribbon Committee Report issued in 1998, the revision or creation
of a new RSBS Charter was recommended, providing for a highly structured organization, with clearly
defined powers and functions, and strict investment guidelines;

WHEREAS, in the Feliciano Commission Report issued in 2003, it was determined that the
RSBS, in its present conception and structure, was “fundamentally flawed” and had not discharged
its mandate. Accordingly, the Feliciano Commission recommended that the RSBS be liquidated in an
orderly manner; that soldiers contributions be returned to them with interest and that an AFP Service
and Insurance System be initiated, which shall be subject to the financial and investment disciplines of
the Bangko Sentral ng Pilipinas (BSP) and the Securities and Exchange Commission (SEC);

WHEREAS, based on the Financial Advisory Report prepared by the KPMG Laya Mananghaya
& Co., Philippines (hereinafter, the “KPMG Report”) on the financial status and condition of RSBS, the
following conclusions were arrived at:

a. Inappropriateness of RSBS’ investment portfolio, which consisted mainly of non-liquid assets
(z.e., real estate and equity investments in and advances to non-traded companies) that take a
long time to dispose, are risky and with very low yields;

b. Slow Fund build-up and inability to achieve its goal of self-sufficiency, caused primarily by
the low rate of profitability of a majority of its assets, classified as non-productive and low-
yielding;

c. Illiquid position as a large portion of its assets is in non-earning or low-yielding investments;
and

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d. Inability of RSBS to follow a Board Resolution, following the Senate Blue Ribbon Committee
investigation of RSBS in 1998, to divest and liquefy all real estate assets and to focus on fixed-
income investments.

WHEREAS, based on the 16'*’ Actuarial Valuation Report rendered by Feliciano E Miravite,
Inc. dated 30 November 2005, it was concluded that the self-sufficiency projections under the current
valuation estimate the point of self-sustaining status of RSBS to occur in the year 2058, and that the
funds of the System shall be exhausted within 32 years after achieving self-sufficiency in the year 2090;

WHEREAS, the foregoing reports provided an indication of the estimated magnitude of RSBS’
Fund deficiency, for the net assets of RSBS to be able to satisfy the retirement benefit payments due to
retired/retiring military personnel under existing laws on the retirement benefits due them;

WHEREAS, the Secretaries of the Department of National Defense (DND), Department of
Finance (DOF), and the Department of Budget and Management (DBM), together with the Chief
of Staff, Armed Forces of the Philippines (CSAFP), have jointly recommended the deactivation and
winding down of the RSBS since it does not and will not be able to attain its objective of attaining
self-sufficiency, which means that the payment of retirement benefits to be given to retired/retiring
military personnel shall continue to be funded by annual appropriations for the AFP in the General
Appropriations Act (GAA);

WHEREAS, in order to insure that the Funds of the System shall be preserved for the payment of
the refund of members’ contributions as and when they fall or become due, it is necessary to deactivate
the operations of the System in an efficient and orderly manner;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Deactivation of the Armed Forces of the Philippines Retirement and Separation
Benefits System. - The Armed Forces of the Philippines Retirement and Separation Benefits System, a
government instrumentality under the Executive Branch, is hereby deactivated, effective 31 December
2006.

SECTION 2. Creation of Cabinet Oversight Committee. - A Cabinet Oversight Committee is
hereby created, composed of the Secretary of National Defense, the Secretary of Finance, the Secretary
of Budget and Management, together with the Chief of Staff, Armed Forces of the Philippines (CSAFP),
and a representative of the Office of the President designated by the President (hereinafter, the “COC-
RSBS”). The COC-RSBS shall provide policy guidelines for, and oversee, the final liquidation of assets
and liabilities of the RSBS, the winding-down of its operations, and the retirement and separation of its
personnel, in accordance with existing laws, rules and regulations, as well as the guidelines set forth in
this Executive Order.

SECTION 3. Specific Guidelines for Deactivation, Liquidation and Winding Down of RSBS. -
The deactivation of RSBS, particularly with respect to the liquidation of its assets and liabilities, as well
as the winding-down of its operations, shall be subject to the following guidelines:

3.1. Due Diligence of RSBS and its Subsidiaries. - In order to accurately determine the financial
condition of RSBS, including all of its Subsidiaries, particularly with respect to the actual
value of its assets and liabilities for purposes of liquidation, the Secretary of National
Defense, in coordination with the Secretary of Finance, shall direct the conduct of a due
diligence review of the books of RSBS and its Subsidiaries as of 30 June 2006;

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3.2. Transfer of Assets to a Government Financial Institution Preparatory to Liquidation and
Winding-Down. - Upon determination of the net asset value of RSBS and its Subsidiaries,
the current assets of the RSBS and its Subsidiaries, shall be transferred to a Government
Financial Institution (GFI) \i.e.. Development Bank of the Philippines (DBF) or Land Bank
of the Philippines (LBP)] recommended by the Cabinet Oversight Committee created under
Section 2 hereof (hereinafter, the “GFI Trustee”), for programmed liquidation (hereinafter,
the “Transferred Assets”), whereby the GFI Trustee shall dispose of and liquidate as much
of the Transferred Assets, in accordance with the implementing rules and regulations to be
issued by the Cabinet Oversight Committee for the purpose;

3.3. Trust Account. — The proceeds of the sale of the Transferred Assets shall, together with all
the mandatory contributions of military personnel collected by the AFP as prescribed under
Section 4 of PD 361 consisting of five percent (5%) of their monthly base pay, shall be
remitted to a Trust Account, to be established by the GFI Trustee for the purpose.

3.4. Professional Trust Management of Members’ Contributions. - The funds in the Trust
Account referred to in 1.3 hereof shall be placed under professional trust management of
the GFI Trustee, or such other GFI professional fund manager to be approved by the Cabinet
Oversight Committee, subject to such investment guidelines as may be prescribed in the rules
and regulations to be jointly issued by the DND, DOF and DBM to implement this Executive
Order;

3.5. Return of Members’ Contributions. - The return of members’ contributions as mandated
under PD 1656, plus six percent (6%) interest upon the retirement of military personnel
shall be paid from RSBS funds in the Trust Account as and when they fall due, and shall be
guaranteed by the National Government.

SECTION 4. Separation or Retirement of RSBS Personnel. - All officers and employees affected
by the deactivation of the RSBS as directed herein shall be retired or separated from the service, in
accordance with the provisions of Republic Act No. 6656, otherwise known as “An Act to Protect
the Security of Tenure of Civil Service Officers and Employees in the Implementation of Government
Reorganization,” and other applicable civil service laws, rules and regulations: Provided, That in the
implementation of the provisions of RA 6656, the provisions of Republic Act No. 6758, entitled “An
Act Prescribing a Revised Compensation and Position Classification in the Government and For Other
Purposes,” otherwise known as the “Salary Standardization Law” shall be strictly complied with.

SECTION 5. Assistance by the Government Corporate Counsel. - The Office of the Government
Corporate Counsel (OGCC), is hereby directed to assist the Cabinet Oversight Committee or the GFI
Trustee on any aspect relating to the deactivation of the RSBS as directed herein.

SECTION 6. New Philippine Military Retirement System. - The DND is hereby directed to
complete the study and prepare the draft legislation that shall establish and set up a new retirement
and pension system for military personnel, that shall have strict guidelines on the organization of its
Governing Board, particularly the investment parameters it is allowed to undertake in the course of
the management of its funds. The provisions of the new retirement and systems law shall apply only to
new recruits or entrants to military service, reckoned from the date of effectivity of the new retirement
and pension system law.

SECTION 7. Effectivity. - This Executive Order shall take effect immediately.

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DONE in the City of Manila, this 15th day of December, in the year of our Lord, Two Thousand
and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 590-A

AMENDING EXECUTIVE ORDER NO. 590 DATED 15 DECEMBER 2006 ON THE
DEACTIVATION OF THE ARMED FORCES OF THE PHILIPPINES RETIREMENT AND
SEPARATION BENEFITS SYSTEM BY 31 DECEMBER 2006, DIRECTING THE TRANSFER OF
ITS ASSETS IN TRUST TO A GOVERNMENT FINANCIAL INSTITUTION,

AND FOR OTHER PURPOSES

WHEREAS, the Armed Forces of the Philippines (“AFP”) Retirement and Separation Benefits
System (“RSBS”) was established under Presidential Decree No. 361 (PD 361) issued on 30 December
1973 to provide for a funding system for the payment of retirement and separation benefits provided
under existing laws to military personnel of the AFP;

WHEREAS, under Section 5 of PD 361, as amended by Presidential Decree No. 1656 issued on
21 December 1979, the funds of RSBS shall be allowed to grow to be able to provide perpetually the
fund requirement necessary to cover the retirement and separation benefits due to military personnel
on a self-sustaining basis: Provided, that prior to the time when perpetual self-sufficiency of the funds
of the RSBS is attained as determined by actuarial evaluation, the yearly requirement for retirement
and separation benefits of military personnel as provided under existing laws shall be funded out of the
annual appropriations for the AFP;

WHEREAS, based on the earlier evaluation and study of the actuarial life and financial status of
RSBS, it was projected to attain self-sufficiency by the year 2058 and is projected to have an actuarial
life of 32 years or until the year 2090;

WHEREAS, after an exhaustive study and evaluation of the present financial and actuarial status
of RSBS, the Secretaries of the Department of National Defense (DND), Department of Finance (DOF),
and the Department of Budget and Management (DBM), together with the Chief of Staff, Armed Forces
of the Philippines (CSAFP), have jointly recommended the deactivation and winding down of the RSBS
on the ground that RSBS will not be able to attain self-sufficiency and its continued operations will be
to the detriment of its members and the country.

WHEREAS, in order to ensure that the funds of RSBS shall be preserved for the refund of the
contributions of members and to meet all other obligations of RSBS as they become due, it is necessary
to deactivate the operations of RSBS in an efficient and orderly manner;

WHEREAS, there is a need to amend Executive Order No. 590 dated 15 December 2006 to
further hasten the accomplishment of the objectives of the deactivation of the RSBS.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

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SECTION 2. Creation of the Cabinet Oversight Committee. - A Cabinet Oversight Committee is
hereby created composed of the Secretary of National Defense, the Secretary of Finance, the Secretary
of Budget and Management, and a representative from the Office of the President as designated by the
President (hereinafter referred to as “COC”). The COC shall exercise oversight function on the final
liquidation of assets and liabilities of the RSBS, the winding-down of its operations, and the retirement
and separation of its personnel, in accordance with existing laws, rules and regulations, as well as the
guidelines set forth in this Executive Order:

SECTION 3 . Specific Guidelines for the Deactivation, Liquidation and Winding Down of RSBS. -
The deactivation of RSBS, particularly with respect to the liquidation of its assets and liabilities, as well
as the winding-down of its operations, shall be subject to the following guidelines:

3.1 Due Diligence of RSBS and its Subsidiaries. - In order to accurately determine the financial
condition of RSBS, including all of its Subsidiaries, particularly with respect to the actual
value of its assets and extent of its liabilities for purposes of liquidation, a due diligence
review of the books of RSBS and its Subsidiaries shall be conducted;

3.2 Transfer of Assets to a Government Financial Institution Preparatory to Liquidation and
Winding-Down. - Upon determination of the net asset value of RSBS and its Subsidiaries,
all the assets of the RSBS and its Subsidiaries shall be transferred to a Government Financial
Institution (GFI) determined by the COC (hereinafter referred to as the “GFI Trustee”), for
programmed liquidation as necessary until all RSBS assets are exhausted;

3.3 Trust Account. - The proceeds of the sale or liquidation of the transferred assets and
other existing funds of RSBS and its Subsidiaries shall, together with all the mandatory
contributions of military personnel collected by the AFP as prescribed under Section 4 of PD
361 consisting of five percent (5%) of their monthly base pay shall be remitted to a Trust
Account to be established by the GFI Trustee for the purpose;

3.4 Professional Trust Management of Members’ Contributions. - The Funds in the Trust
Account referred to in Section 3.3 hereof shall be placed under professional trust management
of the GFI Trustee, or such other professional fund manager to be approved by the Cabinet
Oversight Committee, subject to such investment guidelines as may be prescribed in the rules
and regulations to be jointly issued by the DND, DOF and DBM to implement this Executive
Order;

3.5 Return of Members’ Contributions. - The contributions of its members shall be returned to
them in accordance with existing laws plus interest of six percent (6%) upon the retirement
of its members to be paid from the funds in the Trust Account established under Section 3.3
hereof and shall be guaranteed by the National Government.

SECTION 4. Separation of RSBS Personnel. - All officers and employees of RSBS and its
Subsidiaries affected by the deactivation of the RSBS shall be retired or separated from the service in
accordance with existing laws.

SECTION 5. Assistance by the Government Corporate Counsel. - The Office of the Government
Corporate Counsel (OGCC) is hereby directed to provide all the necessary assistance to the Cabinet
Oversight Committee and/or any of its agencies relating to the deactivation of the RSBS as directed
herein.

SECTION 6. New Philippine Military Retirement System. - The DND is hereby directed to
complete the study and prepare a proposed legislation that shall establish and set up a new retirement

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and pension system for military personnel which shall provide among others strict guidelines on
the organization and powers of its Governing Board in accordance with the best practices in good
governance and provide clear investment parameters that its Governing Board can be allowed to
undertake in the course of the management of its funds.

SECTION 7. Repeal. All orders, issuances and regulations or parts thereof, which are inconsistent
with this Executive Order are hereby revoked or modified accordingly.

SECTION 8. Effectivity. - This Executive Order shall take effect immediately.

DONE in the City of Manila, this 31st day of January, in the year of our Lord Two Thousand and
Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 591

ADJUSTING THE DIVIDEND RATE OF METROPOLITAN WATERWORKS
AND SEWERAGE SYSTEM ON ITS 2005 NET EARNINGS PURSUANT
TO SECTION 5 OF REPUBLIC ACT NO. 7656.

WHEREAS, Section 1 of Republic Act (RA) No. 7656 provides that:

“Section 1. Declaration of policy. It is hereby declared the policy of the State that in
order for the National Government to realize additional revenues, government-owned or
controlled corporations, without impairing their viability and the purpose for which they
have been established, shall share a substantial amount of their net earnings to the National
Government.”

WHEREAS, Section 5 of RA 7656 provides that, “[i] the interest of national economy and
general welfare, the percentage of annual net earnings that shall be declared by the government-owned
or controlled corporations may be suggested by the President of the Philippines upon recommendation
by the Secretary of Finance”;

WHEREAS, to support the viability and mandate of the Metropolitan Waterworks and Sewerage
System (MWSS), the liquidity, capital position, retained earnings and medium-term plans and programs
of MWSS are considered in the determination of the reasonable dividend rates on its 2005 net earnings;

WHEREAS, pursuant to Section 5 of RA 7656, the Secretary of Finance has recommended the
adjustment on the percentage of 2005 net earnings that shall be declared by MWSS as dividend to the
National Government, in the interest of national economy and general welfare.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, do
hereby order:

Sec. 1. The percentage of net earnings to be declared and remitted by the MWSS as dividends to
the National Government as provided for under Section 3 of Republic Act No. 7656 is authorized to
be adjusted to five percent (5%), or an equivalent amount of not less than P57.06M for 2005.

Sec. 2. The adjusted dividend rate provided for under Section 1 is only applicable on 2005 net
earnings of the MWSS.

Sec. 3. This Executive Order shall take effect immediately.

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Done in the City of Manila, this 15th day of December, in the year of Our Lord, Two Thousand
and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: SOI - 600]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 592

IMPOSING THE MANDATORY PAYMENT OF CONTAINER SECURITY FEE IN THE
IMPLEMENTATION OF THE NON-INTRUSIVE CONTAINER INSPECTION SYSTEM (NCIS)
PROJECT OF THE BUREAU OF CUSTOMS AND CREATING A TRUST
FUND FOR THE USE THEREOF

WHEREAS, under Section 602 of the Tariff and Customs Code of the Philippines, as amended,
the Bureau of Customs (BOC) is mandated to, among others, assess and collect lawful revenues from
imported articles, prevent and suppress smuggling and other frauds against Customs, and exercise
supervision and control over all import and export cargoes, landed or stored in piers, airports, terminal
facilities, including container yards and freight stations, for the protection of government revenue;

WHEREAS, in the pursuit of trade facilitation and law enforcement, the BOC issued Customs
Administrative Order (CAO) No. 1-2002 providing for the use of container x-ray machine as an
alternative to actual physical examination to further speed up the examination of shipments and
movement of cargoes;

WHEREAS, in line with such mandate, the BOC proposed to the National Economic and
Development Authority (NEDA) Board, and the latter approved, the Non-Intrusive Container
Inspection System (NCIS) Project, which is the most reliable means of container content identification
while at the same time improving accuracy and correctness of assessment and collection of duties and
taxes; abating smuggling and the illegal entry of drugs and hazardous materials; and improving the
inflow and outflow of containers through the ports;

WHEREAS, the NCIS Project, as embodied in the Framework of Bilateral Agreement between
the Republic of the Philippines and the People’s Republic of China, provides for the acquisition by the
BOC of its NCIS through the grant of a concessional loan by China and pursuant to a government-to-
government (G-to-G) procurement arrangement;

WHEREAS, pursuant to the government-to-government (G-to-G) procurement arrangement, the
BOC and Nuctech Co Ltd. of China, the company nominated by the Chinese government as being the
only qualified supplier of the required container scanning machines, signed a purchase agreement for
the procurement of the NCIS;

WHEREAS, the loan agreement between the BOC thru the Department of Finance and the
Export-Import Bank of China, the bank nominated by the Chinese Government for the loan processing,
was signed, thus, the purchase agreement entered into by and between the BOC and Nuctech Co. Ltd.
has come into force and effect;

WHEREAS, to ensure the sustainability of the NCIS Project, the importers and/or exporters,
being the direct beneficiaries, shall be charged a container security fee (CSF), for every importation/
exportation that passes through any customhouse; and

WHEREAS, the CSF to be collected shall cover loan repayment, maintenance, operational costs
and other related expenses.

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NOW, THEREFORE, I GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

Section 1. Scope. - This Executive Order shall apply to all import and export cargoes, landed or
stored in piers, airports, terminal facilities, including container yards and freight stations under the
jurisdiction of the BOC.

Section 2. Container Security Fee. All shipments covered by this Executive Order shall be imposed
the NEDA Board-approved mandatory container security fee (CSF) in Philippine currency equivalent
to US$50 for every forty-footer container or US$25 for every twenty-footer container or twenty
equivalent units (TEUs), provided that the Commissioner of Customs shall adjust the rates of the CSF
in accordance with the schedule of fees as approved by the NEDA Board.

Section 3. Utilization of the CSF. The CSF shall be expended and utilized in the following manner:

a. Seventy five percent (75%) shall be remitted to the National Treasury as part of the General
Fund for the repayment of the concessional loan to China, including interest, fees and other
charges attendant thereto.

After the completion of the concessional loan payment, the 75% allocation shall be deposited
in a Trust Fund, hereinafter created, in addition to the 25 % allocation.

b. Twenty five percent (25%) shall be retained by the BOC and maintained as an administrative
support system to be deposited in a Trust Fund for the sustainability of the NCIS Project
including but not limited to the following purposes:

b.l Maintenance and improvement of the operation of the NCIS, including the upgrading
thereof;

b.2 Institutionalization of post audit procedures and processes;
b.3 Fraud and fraud-related investigations and prosecutions;

b.4 Training and related programs to enhance the capability and competence of personnel
tasked to operate and maintain the system;

b.5 Other activities and programs to enhance the effectiveness and efficiency of the system as
the BOC may deem to be appropriate.

Section 4. Creation of a Trust Fund. A NCISP Trust Fund is hereby created and established which
shall be sourced from the twenty five percent (25%) portion of the CSF collected as stated in Section 3,
paragraph b of this Executive Order. A permanent committee created under Section 45, Chapter 5,
Book VI of Executive Order No. 292, otherwise known as the Administrative Code of 1987, shall
monitor and evaluate the activities and the balances of the Trust Fund.

Section 5. Failure to follow the directives of this Executive Order shall subject concerned officials
to administrative sanctions pursuant to existing laws, rules and regulations.

Section 6. This Executive Order shall take effect immediately upon its publication in a national
newspaper of general circulation.

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DONE in the City of Manila, this 15th day of December, in the year of Our Lord, Two Thousand
and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 593

DECLARING CERTAIN PARCEL OF LAND OWNED BY THE TELECOMMUNICATIONS
OFFICE SITUATED IN ALUBA HILLS, MACASANDIG, CAGAYAN DE ORO CITY, COVERED BY
TRANSFER CERTIFICATE OF TITLE NO. 10360 (LOT 2917-A, CAD-9856), AS HOUSING SITE
AND PROVIDING FOR ITS DEVELOPMENT AND DISPOSITION IN FAVOR OF THE TELOF X

EMPLOYEES HOUSING ASSOCIATION

WHEREAS, it is the priority concern of the government to provide housing to homeless Filipinos
in line with the Constitution and mandate of the state to protect and advance the right of the people to
a balance and healthful ecology, decent living conditions and social justice;

WHEREAS, Section 8 of Republic Act (RA) 7279, otherwise known as the Urban Development
and Housing Act (UDHA) of 1992, provides that government-owned lands which have not been used
for the purpose for which they were intended for the past ten (10) years form the effectivity of R.A. 7279
may be disposed of for socialized housing purposes;

WHEREAS, government-owned lands as defined in the same section of the Act mentioned
above include those owned or administered by the national government or any of its subdivisions,
instrumentalities, or agencies, including government-owned or controlled corporations (GOCCs) and
their subsidiaries;

WHEREAS, Executive Order No. 131, s. of 2002, directs the national government or any of
its subdivisions, instrumentalities, or agencies, including GOCCs and their subsidiaries, to give full
support and cooperation to HUDCC in the disposition of government-owned lands defined in Section
8 of the Urban Development and Housing Act (UDHA) of 1992;

WHEREAS, the Telecommunications Office (TELOF) formerly known as Bureau of
Telecommunications (BOT) under the Commission on Information and Communication Technology,
owns a parcel of land situated in Aluba Hills, Macasandig, Cagayan de Oro City covered by Transfer
Certificate of Title (TCT) No. T-10360 (Lot 2917-A, Cad-9856) with an approximate land area of
forty-one thousand four hundred sixty-five square meters (41,465 sq. m.) under the name of the
Republic of the Philippines (Bureau of Telecommunications);

WHEREAS, the TELOF has endorsed the segregation and disposition of approximately thirty-
one thousand four hundred sixty-five square meters (31,465 sq. m.) of the property mentioned
earlier, subject to final survey, as housing site for the members of the TELOF X Employees Housing
Association;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby authorize and direct the following:

SECTION 1. Segregation and Disposition of Land as Housing Site. The Telecommunications
Office (TELOF) shall segregate and dispose THIRTY-ONE THOUSAND FOUR HUNDRED
SIXTY-FIVE (31,465) square meters, more or less, of its land covered by Transfer Certificate of Title
No. T-10360 (Lot 2917-A, Cad-9856) located in Aluba Hills, Macasandig, Cagayan De Oro City,

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as housing site for the TELOF X Employees Elousing Association, subject to private rights, if there be
any, road right of way requirements, and to final survey.

SEC. 2. Administration and Development . The TELOF is hereby authorized to administer and
develop the property to benefit the intended beneficiaries.

SEC. 3. Creation of the Inter-Agency (lAC) . An Inter-Agency Committee shall be created,
composed of the TELOF, as Chairman, the Elousing and Urban Development Coordinating Council
(ITUDCC) as Co-Chairman, and the Department of Environment and Natural Resources (DENR) and
representative of the TELOF X Employees Elousing Association as members. The lAC shall formulate
the Implementing Rules and Regulations (IRR) of this Executive Order.

SEC. 4. Funding Allocation. The TELOF, as the administrator of the housing site, shall facilitate
the allocation of a budget to implement this Order, taking into account the funding requirement for
various activities to be undertaken in connection hereof. The TELOF is authorized to provide the
corresponding funds for the site development cost and other logistical requirements of this project.

SEC. 5. Separability Clause. In the event that any provision hereof is declared invalid by any
competent court of tribunal, the other provisions shall remain in full force and effect.

SEC. 6. Effectivity . This Executive Order shall take effect immediately.

IN WITNESS THEREOF, I have hereunto set my hand and caused the seal of the Republic of the
Philippines to be affixed.

DONE in the City of Manila, this 15th day of December, in the year of Our Lord, Two Thousand
and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 594

RULES GOVERNING THE APPOINTMENT / DESIGNATION AND
CONDUCT OF SPECIAL ENVOYS

WHEREAS, pursuant to Section 16, Book III of the Revised Administrative Code of 1987
(Executive Order No. 292), the President shall exercise the power to appoint officials as provided for in
the Constitution and laws;

WHEREAS, the conduct of effective foreign policy often calls for the appointment/designation of
persons with expertise and experience to undertake special tasks or address certain issues, notably in
international economic affairs.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. This Executive Order shall be known as the “Rules Governing the Appointment/
Designation and Conduct of Special Envoys”.

SECTION 2. The appointment/ designation of special envoy shall be accompanied by an express
statement of the terms of reference of said appointment/ designation to be coordinated with the
Department of Foreign Affairs, which shall include, among others, its specific mission and duration.

SECTION 3. Special envoy appointment/ designation shall be defined and categorized as follows:

(a) specific mission or purpose

(b) specific act or event

Unless otherwise specified in the special envoy appointment/ designation paper or its terms of
reference, the appointment/designation shall automatically expire upon the completion of the task or
objective for which the mission, purpose, act or event was directed, or upon the termination of the
duration or period indicated.

SECTION 4. Special envoy appointment/ designation shall be for a specific and expressly stated
mission or purpose, or specified act or event. Unless the special envoy appointed/ designated is an
official of the Department of Foreign Affairs or of another department or agency, said mission, purpose
or act shall not overlap with the regular functions of the Department of Foreign Affairs and/or the
Foreign Service or that of the other concerned department or agency, or its attache services.

SECTION 5. Special envoy appointment/ designation shall contain a specific duration or period,
or otherwise, a target date for the completion of the mission, purpose, act or event. Upon the expiry of
the said appointment/ designation, a subsequent appointment/ designation shall be required for it to be
considered renewed.

SECTION 6. The title “Special Envoy” shall be used only for the duration of the mission, purpose,
act or event.

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SECTION 7. A duly appointed/ designated special envoy may be entitled to the use of diplomatic
or official passport, at the discretion of the Secretary of Foreign Affairs. Said diplomatic or official
passport shall be used only for the duration of the mission. Once the appointment/ designation expires
or lapses pursuant to Sec. 3 or 5 above, the diplomatic or official passport may be renewed only upon
the presentation of a new appointment/ designation paper.

SECTION 8. Unless by virtue of his rank or the nature of the mission he is to report directly
to the President, the special envoy shall report and perform his mission under the supervision of the
following:

(a) The Secretary of Foreign Affairs and

(b) The Head of the Diplomatic or Consular Post where the mission will be carried out.

SECTION 9. The special envoy shall submit an accomplishment or progress report regarding
the mission to the President through the Secretary of Foreign Affairs or the head of other concerned
department or agency, within thirty (30) days upon the completion of the mission or term, or every
six months, in case said mission or term exceed the latter period. The report should contain the salient
points of the mission and his recommendations for follow-up action.

SECTION 10. All appointments/ designations as Special Envoy are considered expired subject to
renewal based on specific mission, purpose, act or event and for a limited period of time not exceeding
six (6) months.

SECTION 11. All executive order, rules and regulations, resolutions, memorandum circulars, and
office memoranda inconsistent with these rules are hereby repealed or modified accordingly. Should
any provision of this Executive Order be held invalid, the remainder hereof shall not be affected
thereby.

SECTION 12. This Executive Order shall become effective fifteen (15) days after publication in
two (2) newspapers of general circulation.

DONE in the City of Manila this 20th day of December, in the year of Our Lord, Two Thousand
and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501
Malacanang Records Office.

600]. Manila:

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MALACANAN PALACE
MANILA

EXECUTIVE ORDER NO. 595

ENSURING EFFECTIVE AND EFFICIENT PUBLIC HEALTH AWARENESS CAMPAIGN FOR
PREVENTION OF COMMON DISEASES THROUGH THE EDUCATIONAL SYSTEM

WHEREAS, the State recognizes that the most common diseases and causes of mortality and
morbidity are taking a great toll on the country’s human and economic resources;

WHEREAS, the causes of the highest rate of mortality or morbidity in the country may be
prevented by proper health and sanitation practices brought about by effective health education and
awareness;

WHEREAS, public and private sector partnerships need to be harnessed for the fight against these
leading causes of mortality and morbidity;

WHEREAS, the education and awareness on the prevention of the most common causes of
morbidity and mortality among Filipinos are best achieved through integration with the health
curriculum of primary and secondary levels;

WHEREAS, there is a need to reassess and review existing health curriculum of primary,
secondary and collegiate levels in order to refocus the same from curative to preventive aspects of
diseases and other top causes of mortality and morbidity in the country.

NOW, THEREFORE, I, GLORIA MACAPAGAL ARROYO, President of the Republic of the
Philippines, by the powers vested in me by law, do hereby order:

SECTION 1. Title. - This Executive Order shall be known as the “Health Education Reform
Order of 2006” (HERO of 2006).

SEC. 2. Scope and Coverage. - The education and common diseases awareness program shall
cover the health curriculum of primary, secondary and collegiate levels all over the country.

SEC. 3. Preventive Health Education Curriculum. - Modules on basic preventive health care for
the top causes of morbidity and mortality shall be integrated into the curricula of all private and public
elementary schools, high schools, colleges and universities in the Philippines. In this regard, existing
health curricula of all private and public elementary schools and high schools shall be refocused from
curative to preventive aspect of the top causes of morbidity and mortality in the country or in the
locality, as the case may be.

SEC. 4. Committee on HERO. - There is hereby created a Committee on Health Education
Reform consisting of:

1. The Secretary of the Department of Education (DepEd) or his alternate whose rank shall not
be lower than Assistant Secretary;

2. The Secretary of Health or his alternate whose rank shall not be lower than Assistant Secretary;

3. The Chairman of the Commission on Higher Education (CHED) or his alternate who shall be
one of the Commissioners of the CHED;

4. The Secretary of the Department of Science and Technology (DOST) or his alternate whose
rank shall not be lower than Assistant Secretary;

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5. Three (3) representatives from the private sector, i.e., two (2) from the medical profession
(i.e. Philippine Medical Association [PMA], Philippine College of Physicians [PCP]) and
one (1) from related or allied sectors, who shall be invited by the Committee upon the
recommendation of recognized medical groups or associations - to formulate and prepare
modules on basic preventive health care for the top causes of morbidity and mortality and to
adopt evaluation monitoring scheme for the said modules. The Committee shall be Co-Chaired
by the Secretaries of the DepEd and DOH.

For this purpose, the Committee on HERO or its individual members may enter into Memoranda
of Agreement with recognized medical associations and groups to ensure continued participation of the
private sector in this important endeavor. Further, the participating agencies, as well as the Committee
on HERO, may receive donations from third parties in form of cash or kind for the furtherance of the
objectives of this Executive Order, subject to pertinent laws, rules and regulations.

The Committee on HERO may create a Technical Working Group (TWG) consisting of officers
from the DepEd, DOH, DOST, CHED and the TESDA from the government sector, as well as
representatives from the private sector, which shall recommend the evaluation scheme with success
metrics/parameters with timelines, necessary modifications to the program, and report the overall
impact of the program on the healthcare and educational system.

SEC. 5. Time Devoted to Health Subject and Integration. - The DepEd, through its Curriculum
Divisions, shall determine the appropriate number of hours to be devoted to health subjects with
emphasis on the preventive aspect of top causes of mortality and morbidity and how to integrate the
same into the current Science and Health curricula of primary and secondary schools.

SEC. 6. Initial List of Modules Coverage. - Modules will cover risk factors for the prevention and
treatment of the top ten causes of mortality and morbidity in the Philippines.

SEC. 7. Verification of Scientific Data. - The DOH shall check the validity and accuracy of all
scientific data on which the modules are based. The Secretary of Health shall certify the scientific
accuracy of the modules as well as the completeness of the content appropriate to the understanding of
the disease condition and its prevention.

SEC. 8. Designation of Modules for Education Level. - It shall be the responsibility of the
Committee on HERO to determine the modules appropriate for student appreciation of the concepts
for each level in elementary and high school and design of the grade and year-level modules to achieve
the same.

The DepEd shall appoint a Committee of teachers in both elementary and high school levels for
every Regional Office who shall be trained in the modules and who will in turn plan, together with
relevant DOH personnel, the cascade of the teaching module to all teachers.

SEC. 9. Modules for Collegiate and Postgraduate Healthcare Professionals. - Specific modules on
the following topics, among others, for the use of collegiate levels shall be developed by the Committee
on HERO: (a) Preventive, Public and Community Health; (b) Management and Leadership concepts
to emphasize health care; (c) Professional and Community Leader Ethics and Professionalism; and
(d) Health Economics. The modules to be created shall instill love of country and a sense of social
responsibility among the health professionals in the fields of medicine, nursing, medical technology,
pharmacy and allied professions.

The CHED shall work with the private sector in the implementation of these modules.

SEC. 10. Pilot Areas. - The DepEd and DOH may jointly identify Pilot Areas for the immediate
implementation of this EO, giving major consideration on the prevalence of the top ten causes of
mortality and morbidity, as well as the poverty incidence, in the particular area.

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SEC. 11. Funding. - Initial expenses of the Committee on HERO shall be equally divided among
the member-agencies from their respective budgets. However, the funding for the development of and
cascading of modules, as well as printing of materials, shall be derived from such sources as may be
determined by the Department of Budget and Management. Thereafter, the same shall be included in
the budgets of the member agencies in the General Appropriations Act.

SEC. 12. Repealing Clause. - All executive issuances, orders, rules and regulations or parts thereof
inconsistent with the provision of this Executive Order are hereby repealed or modified accordingly.

SEC. 13. Separability Clause. - If any section or provision of this executive order shall be declared
unconstitutional or invalid, the other sections or provision not affected thereby shall remain in full
force and effect.

SEC. 14. Effectivity - This Executive Order shall take effect immediately.

DONE in the city of Manila, this 27th December, in the Year of our Lord Two Thousand and Six.

(Sgd.) GLORIA MACAPAGAL- ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501
Malacanang Records Office.

600]. Manila:

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 596

DEFINING AND INCLUDING “GOVERNMENT INSTRUMENTALITY VESTED WITH
CORPORATE POWERS” OR “GOVERNMENT CORPORATE ENTITIES” UNDER THE
JURISDICTION OF THE OFFICE OF THE GOVERNMENT CORPORATE COUNSEL (OGCC) AS
PRINCIPAL LAW OFFICE OF GOVERNMENT-OWNED OR CONTROLLED CORPORATIONS

(GOCCs) AND FOR OTHER PURPOSES

WHEREAS, the Office of the Government Corporate Counsel (OGCC), as the principal law
office of all Government-Owned or Controlled Corporations (GOCCs), including their subsidiaries,
other corporate offsprings and government acquired assets corporations, plays a very significant role in
safeguarding the legal interests and providing the legal requirements of all GOCCs;

WHEREAS, there is an imperative need to integrate, strengthen and rationalize the powers and
jurisdiction of the OGCC in the light of the Decision of the Supreme Court dated July 20, 2006, in
the case of “Manila International Airport Authority vs. Court of Appeals, City of Paranaque, et
al.” (G.R. No. 155650), where the High Court differentiated “government corporate entities” and
“government instrumentalities with corporate powers” from GOCCs for purposes of the provisions
of the Local Government Code on real estate taxes, and other fees and charges imposed by local
government units;

WHEREAS, in the interest of an effective administration of justice, the application and definition
of the term “GOCCs” need to be further clarified and rationalized, to have consistency in referring to
the term and to avoid unintended conflicts and/or confusion;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. The Office of the Government Corporate Counsel (OGCC) shall be the principal
law office of all GOCCs, except as may otherwise be provided by their respective charter or authorized
by the President, their subsidiaries, corporate offsprings, and government acquired asset corporations.
The OGCC shall likewise be the principal law office of “government instrumentality vested with
corporate powers” or “government corporate entity”, as defined by the Supreme Court in the case of
“MIAA vs. Court of Appeals, City of Paranaque, et al.”, supra, notable examples of which are: Manila
International Airport Authority (MIAA), Mactan International Airport Authority, the Philippine Ports
Authority (PPA), Philippine Deposit Insurance Corporation (PDIC), Metropolitan Water and Sewerage
Services (MWSS), Philippine Rice Research Institute (PRRI), Laguna Lake Development Authority
(LLDA), Fisheries Development Authority (FDA), Bases Conversion Development Authority (BCDA),
Cebu Port Authority (CPA), Cagayan de Oro Port Authority, and San Fernando Port Authority.

SECTION 2. As provided under PD 2029, series of 1986, the term GOCCs is defined as a stock
or non-stock corporation, whether performing governmental or proprietary functions, which is directly
chartered by a special law or if organized under the general corporation law, is owned or controlled by

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the government directly, or indirectly, through a parent corporation or subsidiary corporation, to the
extent of at least a majority of its outstanding capital stock or of its outstanding voting capital stock.

Under Section 2(10) of the Introductory Provisions of the Administrative Code of 1987, a
government “instrumentality” refers to any agency of the National Government, not integrated within
the department framework, vested with special functions or jurisdiction by law, endowed with some,
if not all corporate powers, administering special funds, and enjoying operational autonomy, usually
through a charter.

SECTION 3. The following corporations are considered GOCCs under the conditions and/or
circumstances indicated:

a) A corporation organized under the general corporation law under private ownership
at least a majority of the shares of stock of which were conveyed to a government
financial institution, whether by foreclosure or otherwise, or a subsidiary corporation
of a government corporation organized exclusively to own and manage, or lease, or
operate specific assets acquired by a government financial institution in satisfaction of
debts incurred therewith, and which in any case by enunciated policy of the government
is required to be disposed of to private ownership within a specified period of time, shall
not be considered a GOCC before such disposition and even if the ownership or control
thereof is subsequently transferred to another GOCC ;

b) A corporation created by special law which is explicitly intended under that law for
ultimate transfer to private ownership under certain specified conditions shall be
considered a GOCC, until it is transferred to private ownership ;

c) A corporation that is authorized to be established by special law, but which is still
required under that law to register with the Securities and Exchange Commission in
order to acquire a juridical personality, shall not, on the basis of the special law alone, be
considered a GOCC.

SECTION 4. The terms “parent corporation”, “subsidiary” and/or “affiliate” shall have the
following meanings and legal signification:

a) A parent corporation is one which is created by special law;

b) A subsidiary corporation is one organized under the general corporation law (1) under
private ownership at least a majority of the shares of stock of which were conveyed to
a government corporation in satisfaction of debts incurred with a government financial
institution, whether by foreclosure or otherwise, or (2) as a subsidiary corporation of a
government corporation organized exclusively to own and manage, or lease, or operate
specific physical assets acquired by the government financial institution in satisfaction of
debts incurred therewith, and which in any case by enunciated policy of the government
is required to be disposed of to private ownership within a specified period of time;

c) An affiliate corporation is one where total government ownership comprises less than the
majority of its outstanding capital stock and its outstanding voting capital stock.

SECTION 5. All executive issuances, rules and regulations or parts thereof, which are inconsistent
with this Executive Order, are hereby repealed or modified accordingly.

SECTION 6. This Executive Order shall take effect after fifteen (15) days from date of publication
in a national newspaper of general circulation.

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DONE in the City of Manila, on this 29th day of December in the year of Our Lord, Two
Thousand and Six.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2006). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 597

EXTENDING FURTHER THE DURATION OF OPERATIONS OF THE PRESIDENTIAL MIDDLE
EAST PREPAREDNESS COMMITTEE (PMEPC) TO JUNE 30, 2007

WHEREAS, the term of the Presidential Middle East Preparedness Committee (PMEPC) expired
on December 31, 2006 pursuant to Executive Order (EO) No. 549 dated July 18, 2006;

WHEREAS, tension in the Middle East continues to exist particularly in Iraq and also in its
neighboring countries, including Lebanon, Syria, and Israel, which poses serious threats to the security
of overseas Filipino workers in these areas;

WHEREAS, there is an urgent need for the PMEPC to continue to assess and monitor
developments and update contingency measures to ensure the safety of Filipinos in the Middle East,
notably in such countries above mentioned, and to uphold the current ban on the deployment of
Filipino workers to Iraq;

WHEREAS, the PMEPC is also tasked to provide continuing assistance to the Department of
Foreign Affairs, as well as to other government agencies concerned with OFW safety, security, and
protection, in the formulation and implementation of policies, plans, and modes of coordination in
such areas as East Timor and the Korean Peninsula;

WHEREAS, under Section 31, Chapter 10, Title III, Book III of the Administrative Code of 1987,
the President has the continuing authority to reorganize the functions of the Office of the President.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, by
virtue of the powers vested in me by law, do hereby order the extension of the duration of the PMEPC
to June 30, 2007, or unless otherwise directed by the President.

SECTION 1. Function. - The PMEPC shall continue to exercise its functions and responsibilities
as provided under Executive Order No. 159 dated December 23, 2002, in relation to Executive Order
No. 194 and Executive Order No. 195, both dated April 14, 2003, until June 30, 2007.

SECTION 2. Composition - The membership of the Committee, as enumerated under Section 3
of Executive Order No. 159, as amended by Executive Order No. 549, is further expanded to include
one representative from the Bureau of Immigration.

SECTION 3. Funding - The Committee shall be provided an additional funding allocation
of FIVE MILLION PESOS (Php5,000,000.00) for its administrative and operational expenses to
be provided by the Office of the President. Additional financial requirements that may be needed by
the Committee shall be sourced out by the Department of Budget and Management (DBM) from
available funds of the concerned agencies forming part of the PMEPC, subject to the usual government
accounting and auditing rules and regulations.

SECTION 4. Repeal - All other rules, regulations and issuances or parts thereof which are
inconsistent with this Executive Order are hereby repealed or modified accordingly.

SECTION 5. Effectivity - This Order shall take effect immediately.

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DONE in the City of Manila, this 12th day of January, in the year of Our Lord, Two Thousand
and Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 501 - 600]. Manila:
Malacanang Records Office.

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MALACANAN PALACE
MANILA

EXECUTIVE ORDER NO. 598

PLACING THE KALOOKAN-MALABON-NAVOTAS-VALENZUELA FLOOD CONTROL AND
DRAINAGE SYSTEM IMPROVEMENT PROJECT UNDER THE OPERATIONAL CONTROL OF
THE METRO MANILA DEVELOPMENT AUTHORITY

WHEREAS, flood control in Metro Manila is part of the mandate of the Metro Manila
Development Authority (MMDA);

WHEREAS, public works in Metro Manila have previously been placed under the operational
control of the MMDA;

I, GLORIA M. ARROYO, President of the Republic of the Philippines, by the powers vested in me
by the Constitution and by law, do hereby order:

Section 1. The Kalookan-Malabon-Navotas-Valenzuela Flood Control and Drainage System
Improvement Project (KAMANAVA Project) shall be place under the operational control of the
MMDA;

Section 2. The Department of Public Works and Highways (DPWH) shall retain administrative
supervision over the KAMANAVA Project. However, the Secretary of the DPWH shall consult the
Chairman of the MMDA on matters of KAMANAVA Project senior personnel movements.

Section 3. This Executive Order takes effect immediately.

DONE this 1®' day of January in the Year of Our Lord, Two Thousand and Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: SOI - 600]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 599

ADJUSTING THE DIVIDEND RATE OF NATIONAL POWER CORPORATION ON ITS 2005
NET EARNINGS PURSUANT TO SECTION 5 OF REPUBLIC ACT NO. 7656

WHEREAS, Section 1 of Republic Act (RA) No. 7656 provides that:

“Section 1. Declaration of Policy. It is hereby declared the policy of the State that in
order for the National Government to realize additional revenues, government-owned or
controlled corporations, without impairing their viability and the purpose for which they
have been established, shall share a substantial amount of their net earnings to the National
Government.”

WHEREAS, Section 5 of RA 7656 provides that: “[i] the interest of national economy and
general welfare, the percentage of annual net earnings that shall be declared by the government-owned
or controlled corporations may be adjusted by the President of the Philippines upon recommendation
by the Secretary of Finance”;

WHEREAS, to support the viability and mandate of the National Power Corporation (NPC),
the liquidity, capital position, retained earnings and medium-term plans and programs of NPC were
considered in the determination of the reasonable dividend rates on its 2005 net earnings;

WHEREAS, pursuant to Section 5 of RA 7656, the Secretary of Finance has recommended the
adjustment on the percentage of 2005 net earnings that shall be declared by NPC as dividend to the
National Government, in the interest of national economy and general welfare.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, by
virtue of the powers vested in me by law, do hereby order:

SECTION 1. The percentage of net earnings to be declared and remitted by the NPC as dividends
to the National Government as provided for under Section 3 of Republic Act No. 7656 is authorized
to be adjusted to three (3%) percent for 2005, or an equivalent amount of not less than P2.6 Billion.

SECTION 2. The adjusted dividend rate provided for under Section 1 is only applicable on 2005
net earnings of the NPC.

SECTION 3. This Executive Order shall take effect immediately.

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Done in the City of Manila, this 18th day of January, in the year of Our Lord, Two Thousand and
Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: SOI - 600]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 600

ADJUSTING THE DIVIDEND RATE OF NATIONAL HOME MORTGAGE FINANCE
CORPORATION ON ITS 2004 AND 2005 NET EARNINGS PURSUANT TO
SECTION 5 OF REPUBLIC ACT NO. 7656

WHEREAS, under Section 1 of Republic Act No. 7656, it is declared policy of the state that
in order for the National Government to realize additional revenues, government owned and/or
controlled corporations, without impairing their viability and the purposes for which they have been
established, shall share a substantial amount of their net earnings to the National Government;

WHEREAS, Section 5 of Republic Act No. 7656 provides that “in the interest of national
economy and general welfare, the percentage of annual net earnings that shall be declared by a
government owned and/or controlled corporation may be adjusted by the President of the Philippines
upon recommendation by the Secretary of Finance“ ;

WHEREAS, the viability, liquidity, capital position, retained earnings and medium term plans and
programs and mandate of the National Home Mortgage Finance Corporation were considered in the
determination of the reasonable dividend rates on its 2004 and 2005 net earnings;

WHEREAS, pursuant to Section 5 of RA 7656, the Secretary of Finance recommended the
adjustment of the percentage of dividend rate for 2004 and 2005 that shall be declared by NHMFC to
the National Government, in the interest of national economy and general welfare;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, by
virtue of the powers vested in me by law, do hereby order:

SECTION 1. The percentage of net earnings to be declared and remitted by the NHMFC as
dividends to the National Government as provided for under Section 3 of Republic Act No. 7656 is
authorized to be adjusted to five percent (5%), or an equivalent amount of not less than Php 36.207
Mn for 2004 and Php 29.105 Mn for 2005.

SECTION 2. The adjusted dividend rate provided for under Section 1 is only applicable on 2004
and 2005 net earnings of the NHMFC.

SECTION 3. This Executive Order shall take effect immediately.

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DONE in the City of Manila, this 1st day of February, in the year of Our Lord, Two Thousand
and Seven.

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

(Sgd.) GLORIA MACAPAGAL-ARROYO

Office of the President of the Philippines. (2007). [Executive Order Nos.: SOI - 600]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 601

ADJUSTING THE DIVIDEND RATE OF LAND BANK OF THE PHILIPPINES (LBP) ON ITS 2003,
2004 AND 2005 NET EARNINGS PURSUANT TO SECTION 5 OF REPUBLIC ACT NO. 7656

WHEREAS, under Section 1 of Republic Act No. 7656, it is the declared policy of the state
that in order for the National Government to realize additional revenues, government owned and/or
controlled corporations, without impairing their viability and the purposes for which they have been
established, shall share a substantial amount of their net earnings to the National Government;

WHEREAS, Section 5 of Republic Act No. 7656 provides that “in the interest of national
economy and general welfare, the percentage of annual net earnings that shall be declared by a
government owned andlor controlled corporations may be adjusted by the President of the Philippines
upon recommendation by the Secretary of Finance”;

WHEREAS, to support the viability and mandate of LBP, their liquidity, capital position, retained
earnings and medium term plans and programs were considered in the determination of reasonable
dividend rates; and

WHEREAS, pursuant to Section 5 of Republic Act No. 7656, the Secretary of Finance
recommended the adjustment on the percentage of dividend rates for 2003, 2004 and 2005 net
earnings that shall be declared by LBP to the National Government, in the interest of national economy
and general welfare.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, by
virtue of the powers vested in me by law, do hereby order:

SECTION 1. The percentage of dividends for years 2003, 2004 and 2005 to be remitted by LBP
to the National Government, which are composed of:

YEAR

AMOUNT

PERCENTAGE

2005

At least eight hundred million
(P800 M) cash and five hundred
million (P500 M) stock dividends
At least seven hundred million
(P700 M) cash and six hundred
million (P600 M) stock dividends
At least six hundred million (P600
M) cash and eight hundred
seventy one million (P871 M)
stock dividends

23.00% cash

14.00% non-cash

2004

18.00% cash

1 5.40% non-cash

2003

14.01% cash

20.33% non-cash

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SECTION 2. This Executive Order shall take effect immediately.

DONE in the City of Manila, this 9th day of Eebruary, in the year of Our Lord, Two Thousand
and Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 602

CREATING AND ESTABLISHING THE LANAO ADVISORY COUNCIL
AND FOR OTHER PURPOSES

WHEREAS, there exist sixteen Royal Sultanates which are recognized in the provinces of Lanao
del Sur and Lanao del Norte, the cities of Marawi and Iligan and some municipalities in Misamis
Oriental and Bukidnon;

WHEREAS, the sixteen Royal Sultanates have manifested their willingness to participate and
contribute towards the development of Mindanao and the promotion of peace in their area;

WHEREAS, there is a need for a council that can advice the President regarding issues
and problems in the aforementioned area, facilitate the settlement of conflicts and assist in the
implementation of government programs;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, by
virtue of the powers vested in me by law, do hereby order:

SECTION 1. Creation of the Lanao Advisory Council- There is hereby created a Lanao Advisory
Council, hereinafter referred to as the Council, which shall advise the President on matters concerning
and/or affecting the areas where the sixteen Royal Sultanates are recognized, facilitate the settlement of
conflicts and assist the government in the implementation of government programs in said areas.

SECTION 2. Composition of the Council. - Each of the sixteen Royal Sultanates shall be entitled
to equal representation in the Council. Each of the Sultanate shall be represented by their respective
Sultan. The Sultans shall thereafter elect among themselves the Chairman and Vice Chairman of the
Council.

SECTION 3. Duties and Functions of the Council

The Council shall have the following duties and functions:

a. Give advice and recommendations to the President on matters that will promote peace and
development within the area concerning and/or affecting their areas of responsibility;

b. Facilitate the peaceful settlement of conflicts in their area of responsibility;

c. Assist the government in the implementation of its programs within their area of responsibility;

d. Perform such other functions and duties as may be assigned by the President of the Philippines.

The Council shall submit to the President quarterly reports on its accomplishments and activities.

SECTION 4. Funding - The Council shall be provided an annual funding of ONE MILLION
PESOS (Php 1,000,000.00) for its administrative and operational expenses to be sourced from the
budget of the Office of the President.

SECTION 5. Repeal - All other rules, regulations and issuances or parts thereof which are
inconsistent with this Executive Order are hereby repealed or modified accordingly.

SECTION 6. Effectivity - This Executive Order shall take effect immediately.

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Done in the City of Manila this 9th day of February, in the year of Our Lord, Two Thousand and
Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 603

TRANSFERRING THE TELECOMMUNICATIONS OFFICE (TELOF) AND ALL OTHER
OPERATING UNITS DIRECTLY SUPPORTING COMMUNICATIONS FROM THE
COMMISSION ON INFORMATION AND COMMUNICATIONS TECHNOLOGY (CICT) TO
THE DIRECT SUPERVISION AND CONTROL OF THE DEPARTMENT OF TRANSPORTATION

AND COMMUNICATIONS (DOTC)

WHEREAS, Executive Order No. 292, series of 1987, dated July 25, 1987, otherwise known as
the “Administrative Code of 1987” mandates the Department of Transportation and Communications
(DOTC) to be the primary policy, planning, programming, coordinating, implementing, regulating
and administrative entity of the Executive Branch of the government in the promotion, development
and regulation of dependable and coordinated networks of communications systems as well as in the
provision of fast, efficient and reliable communications services;

WHEREAS, Executive Order No. 269, series of 2004, which created the Commission on
Information and Communications Technology (CICT) has placed the Telecommunications Office
(TELOF) and all other operating units then existing in DOTC which directly support Communications,
including the Telecommunications Policy and Planning Office, under the direct supervision and control
of the CICT;

WHEREAS, reverting to DOTC direct control and supervision of TELOF and all other operating
units currently existing in CICT, including the Telecommunications Policy and Planning Office, which
directly support Communications, is necessitated by the present demands of national development and
concomitant development projects as it will streamline bureaucracy operations and effectively promote
fast, efficient and reliable networks of communication system and services;

WHEREAS, under Section 31, Chapter 10, Title III, Book III of EO No. 292, the President of the
Republic of the Philippines has continuing authority to reorganize the administrative structure of the
Executive Branch and to transfer any agency under the Office of the President to another department
or agency.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. The Telecommunications Office and all other operating units currently existing in
CICT which directly support communications, including the Telecommunications Policy and Planning
Office, are hereby placed under the direct supervision and control of the Department of Transportation
and Communications.

SECTION 2. These Offices shall continue to carry out their organizational mandates and
objectives.

SECTION 3. All executive issuances, rules and regulations, or parts thereof, inconsistent with this
Executive Order are hereby repealed, amended or modified accordingly.

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SECTION 4. This Executive Order shall take effect immediately upon its publication in a national
newspaper of general circulation.

DONE in the City of Manila, this 13th day of Eebruary, in the year of Our Lord, Two Thousand
and Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANAN PALACE
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 604

CREATING THE PRESIDENTIAL COORDINATING COUNCIL ON
RESEARCH AND DEVELOPMENT

WHEREAS, technology is the foundation of future economic development.

NOW, THEREFORE, I, GLORIA M. ARROYO, President of the Philippines, by virtue of the
powers vested in me by law, do hereby order:

Section 1. Creation of the Presidential Coordinating Council on Research and Development
(R & D Council), composed of the following:

Chair - President of the Philippines

Vice Chair - Secretary of Science and Technology

Members - Secretary of Agriculture

Secretary of Budget and Management
Secretary of Energy

Secretary of Environment and Natural Resources

Secretary of Foreign Affairs

Secretary of Health

Secretary of National Defense

Secretary of Socio-Economic Planning

Secretary of Trade and Industry

Chairman of the Commission on Higher Education

Chairman of the Commission on Information and Communications

Technology

President of the National Academy of Science and Technology
President of the National Research Council of the Philippines
Five (5) representatives from the private sector

Two (2) representatives from organizations of scientists and engineers
engaged in research and development.

Section 2. Powers and Functions. - The R & D Council shall:

a. Review the institutional arrangements for coordinating the R & D activities of departments,
agencies, academe, business sector and non-government organizations and recommend an
appropriate regular and permanent institutional arrangement for coordinating and overseeing
the allocation of R & D budgets to government departments, agencies and state colleges and
universities with the objective of attaining private and public sector R & D funding increases
to 0.5% of the country’s Gross Domestic Product by 2010.

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b. Recommend a system of establishing priority R & D areas where government funding should
be directed.

c. Institute appropriate measures to establish a monitoring and evaluation system for both public
and private R & D institutions that use public funds.

d. Recommend mechanisms, structures and measures to encourage greater private R & D funding
as well as international funding for R & D initiatives.

e. Perform such other functions as may be assigned by the President.

Section 3. Secretariat and Technical Working Group. - The R & D Council shall have a Secretariat
composed of personnel drawn primarily from the Department of Science and Technology (DOST).

The R & D Council may create technical working groups to be composed of technical staff from
member organizations and the DOST sectoral planning councils.

Section 4. Funding. - The activities and operational expenses of the R & D Council shall be
funded from the DOST budget appropriations.

Section 5. Repealing Clause. - All executive issuances, orders, rules and regulations or parts
thereof inconsistent with the provision of this Executive Order are hereby repealed or modified
accordingly.

Section 6. Separability Clause. - If any section or provision of this Executive Order shall be
declared unconstitutional or valid, the other sections or provisions not affected thereby shall remain in
full force and effect.

Section 7. Effectivity. - This Executive Order shall take effect immediately.

DONE in the City of Manila, this 16* day of February, in the Year of our Lord, Two Thousand
and Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601
Malacanang Records Office.

700]. Manila:

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 605

INSTITUTIONALIZING THE STRUCTURE, MECHANISMS AND STANDARDS TO
IMPLEMENT THE GOVERNMENT QUALITY MANAGEMENT PROGRAM, AMENDING FOR
THE PURPOSE ADMINISTRATIVE ORDER NO. 161, S. 2006

WHEREAS, Administrative Order (AO) No. 161 “Institutionalizing Quality Management
Systems in Government” was issued on 5 October 2006 as one of the National Competitiveness
Summit (NCS) Action Agenda to effect actual improvements in public governance in recognition of
the International Organization for Standardization (ISO) 9000 series which ensures consistency of
products and services through quality processes;

WHEREAS, said AO directs the Departments of Budget and Management-Organization and
Productivity Improvement Bureau (DBM-OPIB), the Department of Trade and Industry-Bureau of
Product Standards (DTI-BPS) and the Development Academy of the Philippines (DAP) to constitute a
committee to formulate the necessary institutional structure, mechanisms and standards to implement
the Government Quality Management Program (GQMP), in consultation with relevant Constitutional
bodies such as the Civil Service Commission (CSC) and the Commission on Audit (COA);

WHEREAS, for the effective implementation of the law, there is a need to identify with more
particularly the guidelines in the pursuit of the components of the GQMP, including the expansion in
its coverage, and the necessary structure that shall formulate the policies and oversee the GQMP;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, by
virtue of the powers vested in me by law, do hereby order:

SECTION 1. Institutionalization of Quality Management Systems in Government. All

departments and agencies of the Executive branch, including all government-owned and/or controlled
corporations (GOCCs) and government financial institutions (GFIs), are hereby directed to adopt the
ISO 9001:2000 Quality Management Systems as part of the implementation of a government- wide
quality management program. The quality management systems shall be certified for demonstrated
conformity with ISO 9001:2000 and the applicable Government Quality Management Systems
Standards (GQMSS), with priority to be given to frontline services.

The State Universities and Colleges (SUCs) are likewise enjoined to establish ISO Quality
Management Systems (ISO-QMS) and be certified accordingly. The Local Government Units (LGUs),
Judiciary, the Legislature and the Constitutional offices are also encouraged to develop ISO-QMS and
pursue certification.

SECTION 2. Objectives of the Government Quality Management Program (GQMP). The
Government Quality Management Program aims to:

1. Promote and enhance public sector performance through the adoption of ISO 9001:2000
Quality Management Systems in all agencies of government;

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2. Develop an institutional infrastructure that shall provide certification with international
accreditation;

3. Establish the citizens’ charter of key government offices that shall be provided to the
transacting public as government’s manifestation of service guarantee; and

4. Recognize citizen-driven government organizations that have attained ISO 9001:2000
certification for other government agencies to emulate.

SECTION 3. Components of the GQMR The GQMP shall have the following key components:

1. Government Quality Management Systems Standards . This component shall involve the
development of a guidance document and the adaptation of relevant ISO management systems
and standards that integrate relevant provisions of pertinent laws and/or rules and regulations
to develop a culture of quality and integrity in governance characterized by citizen-focused and
well-performing government organizations.

2. Advocacy and Capability Building . This component is expected to promote awareness,
generate support, harness resources, and develop organizational capabilities in the
establishment, implementation and continuing improvement of quality management systems in
public sector organizations.

3. Certification of Agencies’ QMS to GQMSS . The Philippine Certification for ISO Quality
Management Systems (PISO-QMS) shall be established to give due recognition to qualified
government organizations that have demonstrated conformity of their QMS to ISO 9001:2000
and the GQMSS. As such, this component shall establish the structure and mechanisms to
ensure the credibility of all aspects of certification in line with said standards.

SECTION 4. Institutional Structure and Mechanisms. There is hereby created a Government
Quality Management Committee (GQMC) to formulate policies and oversee the implementation of
the GQMP.

1. Composition of the GQMC . The GQMC shall be composed of the heads of the following
agencies:

(a) Department of Budget and Management as Chairman;

(b) Department of Trade and Industry as Co-Chairman;

(d) Office of the President-Internal Audit Office as member; and

(e) Development Academy of the Philippines as member.

2. Functions of the GQMC . The GQMC shall have the following specific powers and functions:

(a) Serve as the steering and policy-making body for the GQMP;

(b) Approve the standards, guidelines and institutional mechanisms to implement the
program;

(c) Coordinate with Leagues and LGUs in the formulation of standards and mechanisms to be
adopted by the latter to ensure GQMS certification at the local level;

(d) Coordinate with specific departments and agencies to attend to, or address constraints in
the implementation of relevant Program activities;

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(e) Formulate necessary mechanisms to sustain the implementation of ISO-QMS among
public sector organizations, including measures to fund the effort, as well as recognition/
incentive schemes for Program participants;

(f) Monitor and evaluate the implementation of the GQMP and, when necessary, effect
appropriate adjustments thereon in the light of changing conditions in both the domestic
and international environments; and

(g) Submit progress reports to the President.

3. Resource Persons . The GQMC may invite representatives from the GOA, CSC, local leagues
and local chief executive as its resources persons.

4. Technical Working Group of the GQMC . The GQMC shall establish technical working groups
(TWG) for the effective implementation of the GQMP, when it deems it necessary.

5. Secretariat . The GQMC shall organize a secretariat to provide technical and administrative
support to the GQMC. The Secretariat shall report directly to the GQMC and be manned by personnel
of the member agencies of the GQMC.

SECTION 5. Funding. The implementation of the GQMP at the agency level shall be funded by
the existing appropriations of departments/agencies. The DBM Secretary is likewise authorized to set
aside funds in pursuit of certain Program activities.

SECTION 6. Implementing Rules and Regulations and Guidance Document. The GQMC shall
immediately issue the necessary implementing rules and regulations and the guidance document.

SECTION 7. Repealing Clause. Provisions of existing administrative issuances, rules and
regulations regarding the institutionalization of quality management systems in Government
inconsistent with this Order are hereby repealed accordingly.

SECTION 8. Effectivity. This Executive Order shall take effect upon its publication in a national
newspaper of general circulation.

DONE in the City of Manila, this 23rd day of February, in the year of Our Lord, Two Thousand
and Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By authority of the President:
(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601
Malacanang Records Office.

700]. Manila:

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 606

PURSUING SUSTAINABLE UPLAND DEVELOPMENT ANCHORING ON FOOD, WOOD
AND NON- WOOD SECURITY AND ECONOMIC PRODUCTIVITY AND PROVIDING THE
MECHANISMS FOR ITS IMPLEMENTATION AND FOR OTHER PURPOSES

WHEREAS, a sustainable approach to the development of the natural environment through
effective governance and improved delivery of basic services to the marginalized sector of society is
called for by the government’s development agenda, the Medium-Term Philippine Development Plan
(2004 - 2010) and the commitment to the United Nation’s Millennium Development Goals;

WHEREAS, there is a need to pursue a paradigm shift or refocusing to ensure sustainable
development and livelihood in the countryside, specifically in upland areas, through rehabilitation and
adoption of programs geared towards producing high value crops and trees;

WHEREAS, the country’s land area is comprised largely of upland and forestlands, covering more
than 50% of the 30 million hectares of land, with a big portion of occupied and tilled by marginalized
people such as upland farmers, indigenous peoples and tribal groups, who mostly belong to the socially
and economically displaced and disadvantaged sectors of society;

WHEREAS, the continuing problems of poverty and internal conflict are mostly brought about
by the unequal access and control and inequitable distribution of the benefits over the country’s limited
natural resources and productive areas, especially in the uplands;

WHEREAS, the Department of Environment and Natural Resources (DENR) is the primary
government agency responsible for the conservation, management, protection and proper use of the
country’s environment and natural resources specifically forest lands and other lands of the public
domain;

WHEREAS, under the Local Government Code of 1991, the national government, specifically
the DENR, shares with the Local Government Units (LGUs) the responsibility in the sustainable
management and development of forest and natural resources, as exemplified under Joint Memorandum
Circular signed by the DENR and the Department of the Interior and Local Government (DILG) and
witnessed by the different Leagues of LGUs in 2003 and as early as 1998;

WHEREAS, LGUs have been supporting and addressing the problems of their constituency in the
uplands and have initiated innovative and exemplary practices in sustainable upland development, such
as co-management of natural resources, community-based forestland use planning, forest protection,
resource management, rural road maintenance and agricultural and forestry extension services, in line
with the principles of Sustainable Forest Management (SFM);

WHEREAS, three (3) rural development agencies of the national government, namely the
Department of Agriculture (DA), the Department of Agrarian Reform (DAR), and the DENR, under
the convergence policy, have institutionalized the DA-DAR-DENR Convergence Initiative to address
rural development efforts of the government. This convergence towards sustainable rural development
was formalized through Joint Memorandum Circular (JMC) No. 01, series of 1999, signed by the three
Secretaries of said agencies and revitalized through JMC 2004-01. Further, JMC 2006-01 mandated

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the “Adoption of the Guide for Implementation on DA-DAR-DENR Convergence Initiatives towards
Sustainable Rural Development;”

WHEREAS, the adoption of the Community Based Forest Management strategy supports SFM
and convergence initiatives among legally-mandated agencies working in the uplands and the local
initiatives to effectively address poverty in upland areas;

WHEREAS, there is an urgent need to strengthen the existing development framework between
national government and local government agencies for the improved delivery of basic services and
development programs, specifically in the upland areas.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order the pursuit of sustainable
upland development anchoring on food, wood and non-wood security and economic productivity that
leads to the improvement in the quality of life of upland communities, increase economic productivity
of upland areas, and ensure sustainable management of the country’s forest resources.

SECTION 1. Declaration of Policy. It is the policy of the state to pursue sustainable development
of the country’s upland areas and communities by ensuring a proper balance between ecological and
economic concerns in a manner that the forests natural resource base is maintained and improved.
At the same time this would promote economic activities in the uplands through agricultural and
forest production and utilization of upland resources to generate sufficient income for the communities
residing and making a living in the uplands.

It is further declared as state policy to ensure the equitable access to and enjoyment of the benefits
of development and use of uplands by the marginalized segments of the population and preserve and
conserve these benefits and developments not only for the present generation of Filipinos but also the
future generation.

SEC. 2. Basic Guiding Principles and Strategies. As a matter of policy, the operationalization of
the country’s sustainable upland development strategy at the local levels shall be consistent with the
principles of Sustainable Forest Management (SFM), adopting primarily the Community Based Forest
Management (CBFM) strategy in the conduct of community mobilization, local land-use planning,
delivery of basic social services, extension services, forest protection and resource management,
rural infrastructure and development of local enterprises and livelihood activities. Furthermore, the
implementation of sustainable upland development shall also be based on the following:

1) Co-management is the principle of institutionalizing mutual cooperation and collaborative
partnership between national and local government institutions as well as local communities in
the performance and implementation of legally-mandated responsibilities, roles and functions
in the development and management of the uplands;

2) Convergence is the integration, complementation and maximization of institutional, technical,
resource, financial and human resources of all the key stakeholders in the upland areas,
especially among national and local government agencies; and

3) Participatory Governance involves directly capacitating and fully involving local government
units (LGUs) and communities in the whole process of formulating, planning, implementing
and monitoring of all development activities and programs in the uplands.

SEC. 3. Scope and Coverage. The sustainable development of the uplands shall encompass and
cover lands that are classified as forestlands, including allowable zones within protected areas. The
key activities and areas of concern in support of the development of the uplands are outlined below,
but not limited thereto:

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1) Identify and review convergence and impact of key programs and interventions provided
by national and local agencies, including donor-assisted projects and programs to upland
communities and areas;

2) Review and assess the effectiveness and efficiencies of capacities and operations of key national
and local agencies in the implementation and performance of their mandates in the uplands;

3) Review and assess the consistency and applicability of existing national implementing
policies, guidelines and program in addressing the needs and conditions of upland areas and
communities;

4) Identify, formulate, develop and recommend specific programs of actions and interventions to
support the sustainable development of upland areas and communities; and

5) Identify key policy reforms and recommendations to strengthen delivery and effectiveness of
programs and initiatives in the uplands.

SEC. 4. Agency Involvement. The DENR shall be the lead agency for the implementation of the
sustainable upland development order, assisted by the DA and the DAR.

SEC. 5. Institutional Arrangement. The Sustainable Upland Development Steering Committee is
hereby created to oversee the implementation of this Order, chaired by the DENR, and the following
as members: DA, DAR, DILG, and the Presidential Adviser on Agrarian Reform. The heads of various
national LGU Leagues, such as the League of Provinces, League of Cities, League of Municipalities, and
the Liga ng mga Barangays, are also encouraged to join the meetings of the committee. At the regional/
provincial/city/municipality level, parallel committees created under the convergence initiatives with
the provincial/municipal chief executives as chair, shall be adopted.

SEC. 6. Duties and Responsibilities of Key Agencies Involved:

1) DENR

a) To call upon all national and local agencies for technical, policy, information and resource
assistance and support;

b) Initiate and conduct national and regional discussions and consultations relating to
policies, objectives and programs of actions for sustainable upland development;

c) Review and translate specific recommendations into operational guidelines of national
concern, programs and initiatives, key areas and themes in coordination with national and
local agencies for sustainable upland development;

d) Initiate and enhance partnership and coordinating activities with private sector groups,
donor agencies and other relevant external bodies;

e) Provide assistance to the program beneficiaries in the packaging and marketing of products
derived from the project areas including resource mobilization;

f) Submit regular reports and updates to the Office of the President and other relevant
agencies.

2) DA

a) Assist the DENR in the identification of suitable crop combinations and cropping systems;

b) Assist the DENR in the transfer of appropriate and tested technologies to program
beneficiaries;

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c) Provide assistance to the program beneficiaries in the packaging and marketing of products
derived from the project areas including resources mobilization.

3) DAR

a) Provide assistance in the conduct of capability building and enhancement programs for the
beneficiaries;

b) Provide assistance to the program beneficiaries in the packaging and marketing of products
derived from the project areas including resources mobilization.

4) DILG

a) Ensure coordination at the local level as well as execution/implementation of projects;

b) Provide assistance to the program beneficiaries in the packaging and marketing of products
derived from the project areas including resources mobilization.

SEC. 7. LGU Participation. The LGUs are encouraged to assist (1) in convening the provincial/
municipal committees created under the Convergence Initiative for the identification of specific roles
and functions, (2) in recommending specific programs/projects and interventions, (3) in formulating
specific administrative and operational guidelines related upland development in coordination with
members of related committees, (4) in identifying sources of funds to ensure the delivery of needed
services and implementation of specific programs/projects, and (5) in providing assistance to the
program beneficiaries in packaging and marketing of products derived from the project areas including
resources mobilization.

SEC. 8. Technical Assistance. The DENR shall tap the support services of the different technical
working groups under the DA-DAR-DENR Convergence towards Rural Development and the DENR-
DILG-LGU partnership as well as other individuals and institutional experts and specialists from both
national and local technical agencies.

SEC. 9. Funding. Funds needed to carry out the provisions of this Executive Order shall be taken
from available funds of the DENR, DA and DAR. Other sources of funds such as grants, donations,
and other forms of technical and resource assistance from donor agencies, projects and other public
or private entities may be tapped and facilitated by the DENR, DAR, DA, DILG and all the Leagues
(Provincial/Municipal/City/Barangay) to support the objectives and activities identified under this
Executive Order subject to regular auditing guidelines and procedures.

SEC. 10. Separability. Any portion or provision of this Executive Order that may be declared
unconstitutional shall not have the effect of nullifying other provisions hereof, as long as such
remaining provisions can still subsist and be given effect in their entirety.

SEC. 11. Repeal. All rules and regulations, other issuances or parts thereof, which are inconsistent
with this Executive Order, are hereby repealed or modified accordingly.

SEC. 12. Effectivity. This Executive Order shall take effect fifteen (15) days after its publication in
a national newspaper of general circulation.

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DONE in the City of Manila, this 27th day of February, in the year of Our Lord, Two Thousand
and Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 607
CREATING AN INTER-AGENCY TASK FORCE FOR THE
MILLENNIUM CHALLENGE ACCOUNT

WHEREAS, the Philippines, a Threshold Country, has yet to qualify as a Compact Eligible
Country to avail of the Millennium Challenge Account (MCA) Assistance.

WHEREAS, there is a need to demonstrate our country’s commitment to meeting the MCA
eligibility requirements.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Task Force MCA. There is hereby created an inter-agency task force hereinafter
referred to as Task Force MCA, which shall be attached to the Department of Finance.

SECTION 2. Composition. The Task Force shall be chaired by the Secretary, Department of
Finance, with the Secretary, Department of Foreign Affairs and the Director General of the National
Economic and Development Authority as Members.

SECTION 3. Mandate. Task Force MCA shall endeavor to meet the essential requirements to
make the Philippines qualify as a compact eligible country.

SECTION 4. Powers and Functions. The Task Force MCA shall have, among others, the following
functions:

a. ) Provide third-party sources used by the Millennium Challenge Corporation (MCC) with

correct, updated data on the Philippines.

b. ) Develop proper reporting systems and formats as required by third-party.

c. ) Perform such other powers and functions as may be necessary or incidental to its mandate.

SECTION 5. Secretariat. The Secretary of Finance may designate such officials or employees as
he deems necessary to function as the Secretariat for the Task Force.

SECTION 6. Funding. Funding for the task force may be sourced from available funds of DOF
and DFA, subject to existing accounting and auditing laws and procedures.

SECTION 7. Separability Clause. If any provision of this Executive Order is declared invalid, the
remainder thereof shall not be affected thereby.

SECTION 8. Repealing Clause. All laws, decrees and orders or parts thereof inconsistent herewith
are deemed repealed or modified accordingly.

SECTION 9. Effectivity. This Executive Order shall take effect immediately following its
publication in a national newspaper of general circulation.

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DONE in the City of Manila, this 5th day of March, in the year of Our Lord, Two Thousand and
Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 607-A

AMENDING EXECUTIVE ORDER NO. 607 BY TRANSFERRING ATTACHMENT OF THE
INTER-AGENCY TASK FORCE FOR MILLENNIUM CHALLENGE ACCOUNT FROM THE
DEPARTMENT OF FINANCE TO THE OFFICE OF THE PRESIDENT

WHEREAS, Executive Order No. 607 (series of 2007) created the inter-agency Task Force
Millennium Challenge Account (MCA) attached to the Department of Finance.

WHEREAS, now more than ever, there is an urgency to demonstrate our country’s commitment
to meeting the MCA eligibility requirements;

WHEREAS, the President has the continuing authority to reorganize the administrative structure
of the Office of the President;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, by
virtue of the powers vested in me by law, do hereby amend Executive Order No. 607 as follows:

SECTION 1. Transfer of Task Force MCA to OP. - The attachment of Task Force MCA is hereby
transferred from the Department of Finance to the Office of the President.

SECTION 2. Composition. - The Task Force MCA shall be composed of the Executive Secretary
as Chairman and the following as Members:

’Mhe Secretary of Finance

’Mhe Secretary of Foreign Affairs

’Mhe Director General, National Economic and Development Authority

SECTION 3. Funding. - Funding for the task force may be sourced from available funds of the
Office of the President, subject to existing accounting and auditing laws and procedures.

SECTION 4. Repealing Clause. - All executive issuances or parts thereof inconsistent herewith
are deemed repealed or modified accordingly.

SECTION 5. Effectivity.- This Executive Order shall take effect immediately.

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DONE in the City of Manila, this 25th day of May, in the year of our Lord, Two Thousand and
Nine.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2009). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

EXECUTIVE ORDER NO. 608

ESTABLISHING A NATIONAL SECURITY CLEARANCE SYSTEM FOR GOVERNMENT
PERSONNEL WITH ACCESS TO CLASSIFIED MATTERS AND FOR OTHER PURPOSES

WHEREAS, the government is always at constant risk of being infiltrated by a group or individual
for a purpose which is inimical to national interest;

WHEREAS, these groups/individuals rely on infiltrating and/or developing contacts within the
bureaucracy to be their source of intelligence and other relevant information, particularly on classified
or sensitive information and materials in order to accomplish their unlawful objectives;

WHEREAS, it is the duty and responsibility of all government departments, agencies and offices
to implement security measures that will protect and ensure the integrity and sanctity of classified or
sensitive materials or information they have access to or in their possession;

WHEREAS, Memorandum Circular No. 78 dated August 14, 1964 and Memorandum Circular
No. 196 dated July 19, 1968 were promulgated to ensure against unauthorized access or disclosure
of information and classified matters which could cause grave damage to the government or national
interest;

WHEREAS, there is a need to develop and institutionalize a uniform Security Clearance System
that is national in scope to cover all government personnel who by reason of their function or their
office have access or can have access to classified information or documents;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and direct the
following:

Section 1. Institution of an Interim Security Clearance

a. All heads of government offices or agencies handling or having access to classified matters shall
strictly implement and institutionalize the security clearance procedure approved by the Office of the
National Security Adviser regarding the conduct of a comprehensive background investigation on their
personnel who by reason of their duty or employment, have access to classified matters as defined
under Memorandum Circular No. 78 as amended by Memorandum Circular No. 196 dated July 19,
1968. It is only after passing the said security clearance procedure can the department, agency or office
issue an Interim Security Clearance in favor of said employee. Only the head of the department, agency
or office concerned or their designated representative can issue the Interim Security Clearance.

b. The heads of departments and/or agencies of the government or their designated agents or
instrumentalities, shall before issuance of the Interim Security Clearance, issue a certification that
after strictly complying with the security clearance procedure, the officer or employee is cleared to
have access to classified matters indicating therein the level of such access or category of classified
information to which such personnel is authorized to have access.

c. Each department, agency or office of the government granting the Interim Security Clearance
shall establish and maintain a Security Investigation Index for all personnel granted such Interim
Security Clearance. The records of investigation(s) and the kind of clearance(s) issued shall be made

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a permanent part of the personnel’s 201 file. The Index shall contain the date of the investigation,
the type of investigation conducted, the location of the investigative file, the date the clearance was
granted, the signature of the authority granting such clearance and the category or level of classified
matters to which such personnel is authorized to have access.

d. The heads of departments and/or agencies shall designate a Security Officer who shall assume
responsibility for implementing and maintaining the security clearance system in their respective
jurisdiction.

e. Personnel granted an Interim Security Clearance or Security Clearance shall not disclose, share,
publish or use the information contained in the classified documents or materials in any way that
violates the clearance issued to them or without proper authority.

Section 2. Institution of Security Clearance

a. The head of the department, agency or office of the government or their designated
representatives shall forward the names of their personnel granted an Interim Security Clearance
which have access to materials classified as Secret and above to the Office of the National Security
Adviser/Office of the National Security Director (ONSA/ONSD), through the National Intelligence
Coordinating Agency (MCA). The NICA, on its own or upon request, shall subject to further
background investigation any personnel granted an Interim Security Clearance. The NICA may request
the assistance of any government department, agency or office in the performance of this function.

b. The NICA, upon processing of the information obtained, shall forward its recommendations for
the issuance of a Security Clearance granting access on a “need to know” basis to materials classified
as Secret and above or non-issuance thereof to the ONSA/ONSD for approval. All decisions by the
ONSA/ONSD in this regard, including the validity period for any Security Clearance issued, shall be
forwarded to the department, agency or office concerned for its information and implementation.

c. The Security Clearance issued by the ONSA/ONSD shall remain valid until its expiration unless
revoked earlier.

Section 3. Appeal

A party desiring to appeal the decision of the ONSA/ONSD may file their appeal to the Office of
the President in accordance with law.

Section 4. Limitation Clause

The provisions of this Order shall apply to government personnel with access to or are handling
classified documents and all those contemplated to be granted such authority.

Section 5. Implementing Guidelines

a. The NICA, in coordination with the Intelligence Community and relevant departments and
agencies, shall formulate the Implementing Rules and Regulations subject to the approval of the
National Intelligence Board (NIB) for the effective implementation of this Order.

b. For this purpose, NICA shall undertake measures to acquire the capability to accomplish its
task as mandated in this program.

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Section 6. Administrative Liability

Any unauthorized disclosure, sharing, publication or use of the information contained in
the classified documents or materials shall be considered a grave offense and shall be punishable in
accordance with civil service rules and regulations. The filing of an administrative case against an
erring personnel or officer does not preclude the filing of any other appropriate criminal or civil case
for the same violation/s.

Section 7. Repeal or Amendment

All issuances inconsistent with the provisions of this Executive Order shall be deemed repealed,
amended or modified accordingly.

Section 8. Effectivity

This Executive Order shall take effect fifteen (15) days after publication in two (2) newspapers of
general circulation.

DONE in the City of Manila, this 30th day of March, in the year of Our Lord, Two Thousand
and Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANAN PALACE
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 609

FURTHER ENHANCING EMPLOYABILITY BY DIRECTING THE DEPARTMENT OF LABOR
AND EMPLOYMENT TO ADMINISTER A VOLUNTARY EXAMINATION FOR THE NURSES
LICENSED PURSUANT TO THE JUNE 2006 BOARD OF NURSING EXAMINATION AND
PROVIDING ASSISTANCE TO THE VOLUNTARY EXAMINEES

WHEREAS, the Commission on Graduates of Foreign Nursing Schools (CGFNS) recently
decided that Philippine nurses licensed pursuant to the Board of Nursing (BON) Examination of June
2006 shall not be eligible for the grant of VisaScreen Certificates;

WHEREAS, the CGFNS significantly noted that a retake of and passing the equivalent of Tests
III and V of the June 2006 BON Examination in a Board Examination administered by Philippine
regulatory authorities shall remedy the eligibility problem of nurses;

WHEREAS, the CGFNS likewise urged Philippine authorities to give these nurses the opportunity
to retake the abovementioned equivalency tests without the need of surrendering their licenses;

WHEREAS, in response to this call and as a measure of enhancing the employability of our
nurses, the Government deems it appropriate to immediately act through the Department of Labor
and Employment, which has immediate supervision and control over the Professional Regulation
Commission and the BON.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Special Voluntary Examination. The Department of Labor and Employment
(DOLE), acting through the Board of Nursing (BON) and utilizing the administrative processes of the
Professional Regulation Commission (PRC), shall administer a special voluntary examination to the
nurses licensed pursuant to the June 2006 BON Examination.

SEC. 2. Examination, when taken. The special voluntary examination shall be offered in the
June 2007 and December 2007 BON Examination and may be taken once at either dates, at the
voluntary examinee’s choice, and shall be for the equivalent of Tests III and V of the June 2006 BON
Examination. The results of these tests shall not affect the validity of the licenses previously issued to
the voluntary examinees.

SEC. 3. Examination Process. The application for special voluntary examination shall be filed
with the PRC under the same administrative processes for the application for examination of regular
BON examinees, and the examination itself shall be conducted in the same manner and under the
same security safeguards observed for regular BON examinations. The DOLE Secretary, through his
representatives, shall monitor all stages of the voluntary examination process.

SEC. 4. Examination Results reported directly to the DOLE Secretary. The BON, after correction
of the special voluntary examination papers and tabulation of results, shall report the results solely to
the DOLE Secretary, not to the PRC to whom the regular BON Examination results are reported in the
regular course of things.

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SEC. 5. Dissemination of Results. The DOLE Secretary and the BON Chair, upon receipt of the
results, shall:

a) Undertake the public release of the names of those who passed the examination;

b) Notify the individual examinees; and

c) Furnish the Commission on Graduates of Foreign Nursing Schools (CGFNS) with the official
results and with such information about the regularity of the examination as the CGFNS may
require.

SEC. 6. Waiver of Examination Fees. The PRC is directed to waive the collection of application
fees from the voluntary examinees of the June 2007 and December 2007 special voluntary
examinations, as was the case in the re-take ordered by the courts and implemented in the December
2006 BON Examination.

SEC. 7. Designation of Special Review Centers. The DOLE Secretary is hereby authorized to
designate schools that are either recognized by the Commission on Higher Education (CHED) as
centers of excellence in nursing or with the highest passing rates in nursing examinations in their area,
in such numbers and with such geographic distribution as the Secretary shall determine, as special
review centers through which the Government may channel the financial assistance it shall provide for
the review of voluntary examinees, to ensure the integrity of the preparatory stage of the examination
process and to provide the best review opportunities for the voluntary examinees.

SEC. 8. Promulgation of Additional Guidelines. The DOLE Secretary shall promulgate the
additional guidelines necessary to effectively implement this Executive Order. The PRC and the BON
are hereby directed to provide the fullest coordination, support and cooperation to carry out the terms
of this Order into effect.

SEC. 9. Funding. The amount of Twenty Million Pesos (P20,000,000.00) required for the
administration of the special voluntary examination shall be chargeable against appropriate funding
sources as may be identified by the Secretary of Budget and Management.

SEC. 10. Effectivity. This Executive Order shall take effect fifteen (15) days after its publication in
a national newspaper of general circulation.

DONE in the City of Manila, this 12th of March, in the year of Our Lord, Two Thousand and
Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

EXECUTIVE ORDER NO. 610

TRANSFERRING TO THE DEPARTMENT OF EDUCATION THE RESPONSIBILITY OF THE
OFFICE OF THE PRESIDENT OVER THE BUDGETARY REQUIREMENTS
OF THE NATIONAL MUSEUM

WHEREAS, Section 3 of Republic Act No. 8492 placed the National Museum under the Office of
the President (OP) solely for budgetary purposes;

WHEREAS, Section 17, Article VII of the Constitution provides that the President shall have
control of all executive departments, bureaus and offices and shall ensure that all laws be faithfully
executed;

WHEREAS, paragraph 2, Section 31, Chapter 10, Title III, Book III of Executive Order No. 292
grants the President the continuing authority to reorganize the administrative structure of the Office
of the President and the power to transfer any function under the Office of the President to any other
Department;

WHEREAS, the Department of Education can best perform the responsibility mandated
by Republic Act No. 8492 with respect to the budgetary requirements of the National Museum
considering that it used to be an independent unit under the said Department;

NOW, THEREFORE, I, GLORIA MACAPAGAL - ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Transfer to the Department of Education. The responsibility of the Office of the
President under Section 3 of Republic Act No. 8492 over the budgetary requirements of the National
Museum is hereby transferred to the Department of Education.

SECTION 2. Effectivity. This Executive Order shall take effect immediately.

DONE in the City of Manila, this 13th day of March, in the year of Our Lord, Two Thousand
and Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

EXECUTIVE ORDER NO. 611

AUTHORIZING COMPENSATION ADJUSTMENTS TO GOVERNMENT PERSONNEL

WHEREAS, an efficient and effective civil service is crucial to the continuous development of our
country;

WHEREAS, the basic salary of government employees has not been increased since July 2001, or
for more than 5 years, notwithstanding periodic wage adjustments granted to the private sector, and
the continuous rise in the prices of basic commodities;

WHEREAS, the subsistence allowance of the military and uniformed personnel was last adjusted
in 1998, while the hazard pay has remained at P120/month since its initial grant in 1987;

WHEREAS, there is an imperative need to improve the morale of the civil service through a more
competitive compensation system that supports the economic well being of government personnel;

NOW THEREEORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of
the Philippines, by virtue of the powers vested in me by Presidential Decree (P.D.) No. 985, P.D.
No 1597, Republic Act (R.A.) No. 6758, as amended by the Senate and House of Representatives Joint
Resolution No. 1 dated March 7, 1994, and R.A. No. 9336, do hereby order:

Section 1. New Salary Schedule of Civilian Government Personnel. - The Department of Budget
and Management (DBM) is hereby directed to implement a ten percent (10%) increase over the basic
monthly salaries as of June 30, 2007 of civilian government personnel whose positions are covered
by the Compensation and Position Classification System under R.A. No. 6758, as amended, effective
July 1, 2007.

The adjusted salaries of civilian government personnel shall be in accordance with the Salary
Schedule marked as Annex “A” of this Executive Order: Provided, That the adjustments shall be
the designated salary step of the employee in the salary grade allocation of his or her position as of
June 30, 2007.

Section 2. Subsistence Allowance and Hazard Pay of Military and Uniformed Personnel. -
Military personnel of the Armed Forces of the Philippines and all uniformed personnel under the
Department of the Interior and Local Government, Philippine Coast Guard, and National Mapping
and Resource Information Authority are hereby granted a Thirty Pesos (P30) per day increase in their
subsistence allowance and a One Hundred Twenty Pesos (P120) per month increase in their hazard pay
effective July 1, 2007.

Section 3. Coverage - The ten percent (10%) salary increase authorized herein shall cover civilian
officials and employees of National Government Agencies (NGAs) including State Universities and
Colleges, Government Owned and/or Controlled Corporations (GOCCs), Government Financial
Institutions (GFIs) and Local Government Units (LGUs), which are covered by the Compensation and
Position Classification System under R.A. No. 6758, as amended.

Government agencies which are exempted by law from the coverage of R.A. No. 6758, as
amended, shall not be entitled to any of the compensation adjustments provided herein.

Section 4. Fund Source. - The amounts necessary to implement the compensation adjustments
authorized herein shall be sourced, as follows:

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a. ) For NGAs, the amount shall be charged against the appropriate fund source under the

FY 2007 General Appropriations Act. Thereafter, such amounts as are needed shall be
included in the annual General Appropriations Act.

b. ) For GOCCs and GFIs, the amount shall be taken from their respective corporate funds.

c. ) For LGUs, the amount shall come from their respective local funds.

Section 5. Uniform Percentage Increase in Case of Insufficiency of Funds. - GOCCs, GFIs and
LGUs, which do not have adequate or sufficient funds to pay the compensation adjustments authorized
herein, shall only partially implement the adjusted rates: Provided, that any partial implementation
shall be at a uniform percentage increase for all positions.

Section 6. Allowances and Benefits Based on a Percentage of the Basic Salary of Civilian
Personnel. - Except for the year-end bonus and fixed personnel benefit contributions, there shall be
no corresponding increase in the present allowances and benefits being received by or paid for civilian
government personnel, which are computed at a percentage of their basic salaries, notwithstanding the
ten percent (10%) salary increase authorized herein.

Section 7. Applicability to Certain Constitutional Officials. - The salary increase authorized
herein for the President, Vice-President, Senators and Members of the Flouse of Representatives shall
take effect only after the expiration of the respective terms of office of the incumbent officials pursuant
to Section 10 of Article VI and Section 6 of Article VII of the 1987 Constitution.

Section 8. Implementing Rules and Regulations. - The DBM shall prepare and issue the necessary
rules and regulations to implement the provisions of this Executive Order.

Section 9. Effectivity. - The compensation adjustments authorized herein shall take effect on
July 1, 2007.

Manila, Philippines, 14 March 2007

By the President:

EDUARDO R. ERMITA

Executive Secretary

Reference: Annex “A”

Source: Malacanang Records Office

(Sgd.) GLORIA MACAPAGAL-ARROYO

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601
Malacanang Records Office.

700]. Manila:

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 612

REORGANIZING THE DEPARTMENT OF FOREIGN AFFAIRS-MARITIME AND OCEAN
AFFAIRS CENTER INTO THE COMMISSION ON MARITIME AND OCEAN AFFAIRS UNDER

THE OFFICE OF THE PRESIDENT

WHEREAS, Executive Order No. 738 dated October 3, 1981 established the Cabinet Committee
on the Treaty on the Law of the Sea (CABCOM-LOS) tasked with the implementation of the 1982
United Nations Convention on the Law of the Sea (UNCLOS) in all its aspects;

WHEREAS, Executive Order No. 328 dated June 5, 1988 reconstituted the CABCOM-LOS by
increasing its membership from six (6) to twelve (12);

WHEREAS, Executive Order No. 186 dated July 12, 1994 expanded the coverage of the
CABCOM-LOS and renamed it as the Cabinet Committee on Maritime and Ocean Affairs (CABCOM-
MOA);

WHEREAS, Executive Order No. 132 dated July 30, 1999 strengthened the CABCOM-MOA
and its supporting mechanisms by establishing a Technical Committee, with the CABCOM-MOA
Secretariat being renamed as the Maritime and Ocean Affairs Center (MOAC);

WHEREAS, Executive Order No. 37 dated September 21, 2001 abolished the CABCOM-MOA
and upgraded the status of the MOAC by designating it as an attached agency of the Department
of Foreign Affairs (DFA), thereby expanding the functions and responsibilities of the DFA Secretariat
upon which the functions of the defunct CABCOM-MOA was devolved;

WHEREAS, the effective development, implementation and continuous updating of a Philippine
marine policy is of vital importance to the country as an archipelagic State and maritime nation,
defining its sovereignty, national security, territorial integrity and control over marine, mineral, oil and
other alternative sources of energy from the ocean, and other resources;

WHEREAS, the vital significance of the oceans and seas and its governance is universally
acknowledged and enshrined in the 1982 UNCLOS;

WHEREAS, the Philippines is a signatory to various international agreements on the seas and
oceans, principally the UNCLOS, which entered into force on November 16, 1994, as well as other
international instruments such as the Rio Declaration and Agenda 21;

WHEREAS, the various policy issues related to oceans and maritime policy impacting on the
Philippines as an archipelagic State, demand no less than a dedicated, focused, expert and full-time
office with ample resources to address the multifaceted aspects of maritime concerns;

WHEREAS, Section 20, Chapter 7, Title I, Book III of EO No. 292 grants the President residual
powers to reorganize the Executive Branch of government.

NOW, THEREFORE, I, GLORIA MACAPAGAL ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

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SECTION 1. The Commission on Maritime and Ocean Affairs. - The Department of Foreign
Affairs-Maritime and Ocean Affairs Center (DFA-MOAC) is hereby reorganized and immediately set
up under the Office of the President as the Commission on Maritime and Ocean Affairs (CMOA).

SEC. 2. Mandate. The CMOA shall have overall jurisdiction and direction over policy-
formulation, implementation and coordination with other departments and experts, both foreign as
well as local, on maritime issues.

SEC. 3. Composition. - The CMOA shall be composed of the Executive Secretary as Chair,
the Secretary of Justice and the Secretary of Foreign Affairs as Vice-Chairs, and the following as
members: Department of National Defense (DND), National Security Council (NSC), Department
of Environment and Natural Resources (DENR), Department of Budget and Management (DBM),
Department of Transportation and Communications (DOTC), Department of Tourism (DOT),
Department of Trade and Industry (DTI), Bureau of Fisheries and Aquatic Resources (BEAR), the
Solicitor General (SolGen), the Chief Presidential Legal Counsel (CPLC), National Mapping and
Resources Information Authority (NAMRIA), and the Philippine Coast Guard (PCG).

The CMOA chair may call on other agencies for assistance in the performance of its mandate and
tasks.

SEC. 4. Role of DFA. - The DFA shall remain the Lead Agency in the conduct of the Philippines’
participation in international meetings, conferences, and negotiations on maritime and oceans policy
including maritime boundary delimitation. It shall also function as the Secretariat of the CMOA.

SEC. 5. Funding. - The CMOA shall be provided with an initial funding of Fifty Million Pesos
(Php 50,000,000.00) to be drawn from funds of the Office of the President subject to the established
accounting and auditing rules and regulations. Appropriations for the succeeding fiscal years shall be
incorporated in the General Appropriations Act.

SEC. 6. Technical Working Group. - The CMOA may create such Technical Working Groups as
may be necessary to accomplish its mandate and tasks.

SEC. 7. Separability. - Any portion or provision of this Executive Order that may be declared
unconstitutional shall not have the effect of nullifying its other portions or provisions, as long as such
remaining portions can still be given effect.

SEC. 8. Repeal. - All executive orders, rules and regulations and other issuances or parts
thereof, which are inconsistent with this Executive Order, are hereby revoked, amended, or modified
accordingly.

SEC. 9. Effectivity. - This Executive Order shall take effect fifteen (15) days after its publication in
a national newspaper of general circulation.

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DONE in the City of Manila, this 27th day of March, in the year of Our Lord, Two Thousand
and Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 612-A
AMENDING EXECUTIVE ORDER NO. 612, SERIES OF 2007

WHEREAS, Executive Order No. 612 dated March 27, 2007, reorganized the Department of
Foreign Affairs-Maritime and Ocean Affairs Center into the Commission on Maritime and Ocean
Affairs (CMOA) under the Office of the President, and defined therein the composition of the
Commission;

WHEREAS, the Department of Energy has scientific and technical expertise and resources that
are significant to the accomplishment of the mandate and tasks of CMOA;

WHEREAS, the DOE has been actively participating in the scientific technical work involved in
the identification of the Philippine baselines and in the preparation of the submission to the United
Nations of the country’s claim for extended continental shelf;

WHEREAS, in order to be able to fully contribute its knowledge and expertise, the DOE should
be an integral part of the CMOA;

NOW, THEREFORE, I, GLORIA MACAPAGAL ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

Section 1. Section 3 of Executive Order No. 612 is hereby amended to read as follows:

“Section 3. Composition. - The CMOA shall be composed of the Executive Secretary
as Chair, the Secretary of Justice and the Secretary of Foreign Affairs as Vice-Chairs, and the
following as members: Department of National Defense (DND), National Security Council,
Department of Environment and Natural Resources (DENR), Department of Energy
(DOE), Department of Budget and Management (DBM), Department of Transportation
and Communications (DOTC), Department of Tourism (DOT), Department of Trade and
Industry (DTI), Bureau of Fisheries and Aquatic Resources (BEAR), the Solicitor General
(SolGen), the Chief Presidential Legal Counsel (CPLC), National Mapping and Resources
Information Authority (NAMRIA), and the Philippine Coast Guard (PCG).”

Sec. 2. This Order shall take effect immediately.

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Done in the City of Manila, this 17th day of December, in the year of our Lord, Two Thousand
and Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 613

MODIFYING THE RATES OF DUTY ON CERTAIN IMPORTED ARTICLES AS PROVIDED
FOR UNDER THE TARIFF AND CUSTOMS CODE OF 1978, AS AMENDED, IN ORDER TO
IMPLEMENT THE COMMITMENT TO REDUCE TARIFF RATES ON CERTAIN PRODUCTS
INCLUDED IN THE NORMAL TRACK OF THE ASEAN-CHINA FREE TRADE AREA

WHEREAS, the Framework Agreement on Comprehensive Economic Cooperation (Framework
Agreement) between the Association of South East Asian Nations (ASEAN) and the People’s Republic
of China (China) was signed by the Heads of Government/State of the ASEAN Member States and
China on 4 November 2002 in Cambodia;

WHEREAS, Articles 2(a), 3(1), and 8(1) of the Framework Agreement reflect the Parties’
commitment to establish the ASEAN-China Free Trade Area (ACFTA) covering trade in goods by 2010
for ASEAN 6 and China, and by 2015 for the newer ASEAN Member States;

WHEREAS, the Agreement on Trade in Goods of the Framework Agreement was signed by the
Economic Ministers of the Parties on 29 November 2004 in Laos;

WHEREAS, Article 3(2)(a) of the Agreement on Trade in Goods of the Framework Agreement
provides that tariff lines placed in the Normal Track by each Party shall have their respective applied
MEN tariff rates gradually reduced and eliminated in accordance with the modalities set out in Annex
1 of the Agreement with the objective of achieving the targets prescribed in the threshold therein;

WHEREAS, the aforesaid Annex 1 of the Agreement on Trade in Goods of the Framework
Agreement provides that ASEAN 6 and China shall implement the following tariff reduction schedule
for products in the Normal Track by 1 July 2005; (a) applied MEN tariff rates above 20% shall be
reduced to 20%; (b) applied MEN tariff rates from 15% tO 19% shall be at 15% (c) applied MEN
tariff rates from 10% to 14% shall be at 10% (d) applied MEN tariff rates from 6% to 9% shall be
reduced to 5% and (e) applied MEN tariff rates from 0% to 5% shall be maintained;

WHEREAS, the NEDA Board approved on 14 January 2007, the reduction in tariff rates on
2,203 tariff lines in compliance with the modalities set out in the Agreement on Trade in Goods of the
Framework Agreement;

WHEREAS, Section 402 of the Tariff and Customs Code of 1978 (PD 1464), as amended,
empowers the President of the Republic of the Philippines, upon the recommendation of the National
Economic and Development Authority, to increase, reduce or remove existing protective rates of import
duty, as well as to modify the form of duty;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. The articles specifically listed in Annex “A” (Articles Granted Tariff Concession
Under the Normal Track of the ASEAN-China Free Trade Area) hereof, as classified under Section
104 of the Tariff and Customs Code of 1978, as amended, shall be subject to the ACFTA rates in
accordance with the schedule indicated in Columns 4-6 of Annex “A”. The ACFTA rates so indicated

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shall be accorded to imports coming from the parties of the Agreement on Trade in Goods of the
Framework Agreement applying tariff concession to the same product pursuant to Article 3 of the
Agreement on Trade in Goods of the Framework Agreement.

SEC. 2. For ASEAN 9 (i.e. Brunei Darussalam, Cambodia, Indonesia, Lao Peoples Democratic
Republic, Malaysia, Myanmar, Singapore, Thailand and Vietnam) the applicable rate shall be
the ACFTA or the Common Effective Preferential Tariff (CEPT) rate whichever is lower, subject to the
submission of the proper Certificate of Origin, Form E or D. The Tariff Commission pursuant to
Section 1313(a) of the Tariff and Customs Code of the Philippines, as amended, may, upon request,
issue tariff classification rulings to confirm the applicable rates of duty of particular products subject to
this section.

SEC. 3. In the event that any subsequent change is made in the basic (MEN) Philippine rate of
duty on any of the article listed in Annex “A” to a rate lower than the rate prescribed in Columns 4-6
of Annex “A”, such article shall automatically be accorded the corresponding reduced duty.

SEC. 4. From the date of effectivity of this Order, all articles listed in Annex “A” entered into or
withdrawn from warehouses in the Philippines for consumption shall be imposed the rates of duty
therein prescribed subject to compliance with the Rules of Origin as provided for in Article 5 of the
Agreement on Trade in Goods of the Framework Agreement or Article 2.4 of the Agreement on the
CEPT Scheme for the AFTA.

SEC. 5. All presidential issuances, administrative rules and regulations, or parts thereof, which are
contrary to or inconsistent with this Executive Order are hereby revoked or modified accordingly.

SEC. 6. This Executive Order shall take effect immediately following its complete publication in
the Official Gazette or in a national newspaper of general circulation in the Philippines.

Done in the City of Manila, this 17th day of April, in the year of Our Lord, Two Thousand and
Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601
Malacanang Records Office.

700]. Manila:

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MALACANANG

MANILA

EXECUTIVE ORDER NO. 614

TRANSFERRING THE ADMINISTRATIVE SUPERVISION OF THE OFFICE OF THE
PRESIDENT OVER THE TECHNOLOGY AND LIVELIHOOD RESOURCE CENTER (TLRC),
HEREAFTER TO BE KNOWN AS THE TECHNOLOGY RESOURCE CENTER (TRC),

TO THE DEPARTMENT OF SCIENCE AND TECHNOLOGY

WHEREAS, the Technology Resource Center (TRC) was created as a corporate body by
Presidential Decree No. 1097 on 23 February 1977;

WHEREAS, following its creation, the TRC functioned as an attached agency of the then Ministry
of Human Settlements;

WHEREAS, Executive Order No. 10 was issued by then President Corazon C. Aquino placing all
offices, agencies, and corporations attached to the Ministry of Human Settlements to the Office of the
President;

WHEREAS, pursuant to the said executive order, the TRC, which later became known as the
Technology and Livelihood Resource Center (TLRC), was placed under the administrative supervision
of the Office of the President;

WHEREAS, Section 17, Article VII of the Constitution provides that the President shall have
control of all executive departments, bureaus, and offices and shall ensure that all laws be faithfully
executed;

WHEREAS, the President of the Philippines has continuing authority to reorganize the
administrative structure of the Office of the President by, among others, transferring any agency
under the Office of the President to any other department or agency of the Government pursuant to
paragraph 3, Section 31, Chapter 10, Title III, Book III of Executive Order No. 292;

WHEREAS, to better monitor the exercise of powers and the performance of the functions and
responsibilities of the TLRC, it is imperative to transfer the administrative supervision over the agency
to the Department of Science and Technology;

NOW, THEREFORE, I, GLORIA MACAPAGAL - ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Transfer of Administrative Supervision to DOST. The administrative supervision of
the Office of the President over the Technology Livelihood and Resource Center is hereby transferred
to the Department of Science and Technology (DOST).

SECTION 2. Renaming TLRC. The Technology Livelihood and Resource Center shall be known
as Technology Resource Center.

SECTION 3. Repealing Clause. All executive orders, issuances, rules and regulations, or parts
thereof inconsistent with the provisions of this Order are hereby repealed, amended or modified
accordingly.

SECTION 4. Effectivity. This Executive Order shall take effect immediately.

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DONE in the City of Manila, this 29th day of March, in the year of Our Lord Two Thousand and
Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

OFFICIAL GAZETTE

ARROYO I Volume 4

MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 615

MANDATING THE TRANSFER OF THE NAYONG FILIPINO CULTURAL PARK TO THE
15-HECTARE PROPERTY OF THE PHILIPPINE RECLAMATION AUTHORITY AREA
IN PARANAQUE, AND THE TRANSFER OF 15 HECTARES OF NAYONG FILIPINO
FOUNDATION PROPERTY TO THE PHILIPPINE RECLAMATION AUTHORITY

WHEREAS, under Executive Order No. Ill dated 26 June 2002, the President of the Philippines
directed, among others, the closure and cessation of the park operations of Nayong Filipino Cultural
Park pending its redevelopment, except for purposes of overseeing, maintaining and preserving the
assets of the park and of the Nayong Filipino Foundation (NPF);

WHEREAS, under Executive Order No. 135 dated 21 October 2002, the President of the
Philippines directed NPF to look for an alternative site for a new Nayong Filipino Cultural Park;

WHEREAS, the Philippine Reclamation Authority (PRA) is the registered owner of a 15-hectare
parcel of land located at the Central Business Park-1 Island B & C along the ASEAN Avenue, inland
Channel and Bay Boulevard in the Manila Bay Reclamation Area in Paranaque (PRA Property);

WHEREAS, the NPF has identified the PRA property as an appropriate site for its new Cultural

Park;

WHEREAS, the Nayong Filipino and the PRA executed a Memorandum of Agreement relative
to the exchange of their respective properties covering fifteen (15) hectares each in Pasay City and
Paranaque City;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

1. The Nayong Filipino Cultural Park shall transfer to the 15-hectare PRA Property in Paranaque
City.

2. The Nayong Filipino Foundation shall transfer to PRA its 15 hectares property in Pasay City.

3. The Register of Deeds for Paranaque and Pasay Cities shall effect the immediate transfer of
titles to implement this Order.

4. This Executive Order shall take effect immediately.

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DONE in the City of Manila, this 2nd day of April, in the year of our Lord, Two Thousand and
Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

OFFICIAL GAZETTE

ARROYO I Volume 4

MALACANANG

MANILA

EXECUTIVE ORDER NO. 616
CREATION OF THE ANTI-HUNGER TASK FORCE

WHEREAS, the latest quarterly survey on hunger conducted by the Social Weather Stations
reported that 19% or 3.3 million families suffer from involuntary hunger;

WHEREAS, the Accelerated Hunger-Mitigation Program is the landmark program of the Arroyo
Government to address hunger both on the aspect of supply or the unavailability or insufficiency of
food and on the aspect of demand or the inability to buy food;

WHEREAS, the National Nutrition Council, by virtue of Executive Order 472, was tasked to
ensure a client-based operations and to undertake necessary steps to prioritize addressing hunger and
malnutrition;

WHEREAS, the National Nutrition Council, by virtue of the Memorandum from the President
dated 06 July 2006, was directed to oversee the implementation of the Accelerated Hunger-Mitigation
Program as formulated by the National Economic and Development Authority to cut hunger incidence
by half in one (1) year;

WHEREAS, the Accelerated Hunger-Mitigation Program is implemented by national government
agencies based on hunger-mitigation program framework;

WHEREAS, in view of the current hunger situation, it is imperative to further accelerate actions
to mitigate hunger in six (6) months;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law do hereby order the following:

Section 1. Creation of the Anti-Hunger Task Force.

The Anti-Hunger Task Force is hereby created composed of national government agencies
implementing the component programs of the Accelerated Hunger-Mitigation Program (AHMP). The
Task Force will closely work with faith-based organizations to widen the reach of the program among
the poor and hungry households in the National Capital Region and the identified priority provinces of
the country.

Section 2. Composition.

2.1 The Anti-Hunger Task Force shall be composed of the following agencies:

Department of Agrarian Reform (DAR)

Presidential Agrarian Reform Council (PARC-DAR)

Department of Agriculture (DA)

Bureau of Animal Industry (BAI)

Bureau of Fisheries and Aquatic Resources (BEAR-DA)

Bureau of Plant Industry (BPI-DA)

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Coconut Industry Investment Fund (CIIF)

National Food Authority (NFA-DA)

National Irrigation Administration (NIA-DA)

Philippine Coconut Authority (PCA-DA)

Department of Budget and Management (DBM)

Department of Environment and Natural Resources (DENR)

Philippine Forest Corporation (PFC-DENR)

Department of Education (DepEd)

Department of Health

Commission on Population (POPCOM)

Department of the Interior and Local Government (DILG)

Philippine National Police (PNP)

Department of Labor and Employment (DOLE)

Technical Skills and Development Authority (TESDA)

Department of Public Works and Highways (DPWH)

Department of Social Welfare and Development (DSWD)

Department of Transportation and Communications (DOTC)

Philippine Ports Authority (PPA-DOTC)

National Economic and Development Authority (NEDA)

Office of the President

Commission on Higher Education

National Anti-Poverty Commission

Metro Manila Development Authority (MMDA)

People’s Credit Finance Corporation (PCFC)

Armed Forces of the Philippines

Catholic Bishops Conference of the Philippines/National Social Action Center

2.2 The National Nutrition Council of the Department of Health shall lead the Task Force to
ensure that hunger-mitigation measures are in place.

Section 3. Duties of the Task Force.

3.1 The Department Secretary/Head of the above-mentioned agencies shall serve as the Anti-
Hunger Focal Person of his/her department. He/she shall:

a. fast track the implementation of his/her agency’s hunger-mitigation component program/s;

b. ensure timely disbursement of funds for the implementation of said program/s;

c. monitor the implementation of his/her agency’s hunger-mitigation component program and
report to the President, through the DOH-National Nutrition Council, its progress of implementation;

d. provide the public with correct information about his/her hunger-mitigation component
program; and

e. provide other assistance as may be needed to carry-out the functions and duties of the Task
Force.

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3.2 The DOH-National Nutrition Council shall:

a. serve as the oversight agency for the implementation of the AHMP;

b. monitor the implementation of program components of the AHMP by the implementing
agencies; and

c. report to the President and the Cabinet the progress of the implementation of the AHMP.
Section 4. Effectivity. This Executive Order shall take effect immediately.

Done in the City of Manila, this 3rd day of April, in the year of our Lord Two Thousand and
Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 617

MODIFYING THE RATES OF DUTY ON CERTAIN IMPORTED ARTICLES AS PROVIDED
FOR UNDER THE TARIFF AND CUSTOMS CODE OF 1978, AS AMENDED, IN ORDER TO
IMPLEMENT THE COMMITMENT TO REDUCE THE COMMON EFFECTIVE PREFERENTIAL
TARIFF RATES OF CERTAIN PRODUCTS TO ZERO PERCENT UNDER THE ASEAN
FRAMEWORK AGREEMENT FOR THE INTEGRATION OF PRIORITY SECTORS

WHEREAS, at the 10* ASEAN Summit held in Vientianne on 29 November 2004, the ASEAN
Heads of Government/State signed the ASEAN Framework Agreement for the Integration of Priority
Sectors hereinafter referred to as the “framework Agreement”-,

WHEREAS, the objective of the Framework Agreement is to enable the progressive, expeditious
and systematic integration of priority sectors through the identification of measures to be implemented
with clear timelines, in a mutually beneficial manner, by the ASEAN Member States;

WHEREAS, Article 2 of the Framework Agreement Identifies eleven (11) priority sectors, namely,
agro-based products, air travel, automotives, e-ASEAN, electronics, fisheries, healthcare, rubber-based
products, textiles and apparels, tourism, wood-based products;

WHEREAS, Article 4 of the Framework Agreement provides that Brunei Darussalam, Indonesia,
Malaysia, the Philippines, Singapore and Thailand shall eliminate by 1 January 2007 all Common
Effective Preferential Tariff (CEPT) rates of products (other than those in the sensitive, highly sensitive
and general exception lists) covered by the individual ASEAN Sectoral Integration Protocols, except
those listed in accompanying negative lists to the Protocols;

WHEREAS, on 14 January 2007, the NEDA Board approved the reduction of CEPT rates to 0%
on various products in compliance with the Philippine commitment under the Framework Agreement;

WHEREAS, Section 402 of the Tariff and Customs Code of 1978, as amended, empowers
the President upon the recommendation of the National Economic and Development Authority, to
increase, reduce or remove existing protective rates of import duty, as well as to modify the form of
duty;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. The articles specifically listed in Annex “A” hereof (Articles Granted Zero (0%)
AFTA-CEPT Concession under the ASEAN Framework Agreement for the Integration of Priority
Sectors), as classified under Section 104 of the Tariff and Customs Code of 1978, as amended, shall
be subject to the ASEAN CEPT rate indicated in Column 4 of Annex “A”. The ASEAN CEPT rates so
indicated shall be accorded to imports coming from ASEAN Member States applying CEPT concession
to the same products pursuant to Article 4 of the CEPT Agreement and its Interpretative Notes.

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therein prescribed subject to compliance with the Rules of Origin as provided for in the Agreement on
the CEPT Scheme for the AFTA signed on 28 January 1992.

SEC. 3. All presidential issuances, administrative rules and regulations, or parts thereof, which are
contrary to or inconsistent with this Executive Order are hereby repealed or modified accordingly.

SEC. 4. This Executive Order shall take effect immediately following its complete publication in
the Official Gazette or in a national newspaper of general circulation in the Philippines.

Done in the City of Manila, this 23rd day of April, in the year of Our Lord, Two Thousand and
Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601
Malacanang Records Office.

700]. Manila:

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 618

MODIFYING THE RATES OF DUTY ON CERTAIN IMPORTED ARTICLES AS PROVIDED
FOR UNDER THE TARIFF AND CUSTOMS CODE OF 1978, AS AMENDED, IN ORDER TO
IMPLEMENT THE COMMITMENT TO GRANT RECIPROCAL TARIFF RATE TREATMENT
ON TARIFF LINES INCLUDED IN THE SENSITIVE TRACK OF THE
ASEAN-CHINA FREE TRADE AREA

WHEREAS, the Agreement on Trade in Goods of the Framework Agreement was signed by the
Economic Ministers of the Parties on 29 November 2004 in Laos;

WHEREAS, Article 3(2)(b) of the Agreement on Trade in Goods of the Framework Agreement
provides that tariff lines placed in the Sensitive Track by each Party shall have their respective applied
MEN tariff rates reduced or eliminated within timeframes in accordance with the modalities set out in
Annex 2 of the Agreement.

WHEREAS, the aforesaid Annex 2 of the Agreement on Trade in Goods of the Framework
Agreement provides that the reciprocal tariff rate treatment of tariff lines placed by a Party in the
Sensitive Track shall be governed by the following conditions: (a) the tariff rate for a tariff line placed
by a Party in the Sensitive Track must be at 10% or below for the Party to enjoy reciprocity; (b) the
reciprocal tariff rate to be applied to a tariff line placed by a Party in the Sensitive Track shall either
be the tariff rate of that Party’s tariff line, or the Normal track tariff rate of the same tariff line of the
other Party or Parties from whom reciprocity is sought, whichever is higher; and (c) the reciprocal
tariff rate to be applied to a tariff line placed by a Party in the Sensitive Track shall in no case exceed
the applied MEN rate of the same tariff line of the Party or Parties from whom reciprocity is sought.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. The products of the other Parties under their Sensitive Track in Annex “A” hereof,
will be accorded reciprocal tariff treatment as governed by Paragraphs 5 and 6 of Annex 2 of the
Agreement on Trade in Goods after a notification has been received from the Party/Parties that the

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rates of duty of products in its Sensitive Track are at 10% and below. For confirmation of the products
covered by this reciprocity rule, the Tariff Commission (TC), upon request shall request shall issue
tariff classification rulings pursuant to Section 1313 (a) of the Tariff and Customs Code, as amended.

SEC. 2. From the date of effectivity of this Order, all articles listed in Annex “A” entered into or
withdrawn from warehouses in the Philippines for consumption shall be imposed the rates of duty
therein prescribed subject to compliance with the Rules of Origin as provided for in Article 5 of the
Agreement on Trade in Goods of the Framework Agreement.

SEC. 3. All presidential issuances, administrative rules and regulations, or parts thereof, which are
contrary to or inconsistent with this Executive Order are hereby revoked or modified accordingly.

SEC. 4. This Executive Order shall take effect immediately following its complete publication in
the Official Gazette or in a national newspaper of general circulation in the Philippines.

Done in the City of Manila this 23rd day of April, in the year of Our Lord, Two Thousand and
Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601
Malacanang Records Office.

700]. Manila:

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 619

CREATING AND DESIGNATING SPECIAL ECONOMIC ZONES PURSUANT TO REPUBLIC
ACT NO. 7916, AS AMENDED BY RA 8784, IN RELATION TO RA 7227, AS AMENDED BY RA

9400, INSIDE THE CLARK FREEPORT ZONE

WHEREAS, the development of Special Economic Zones (SEZ) designed to promote and
accelerate a balanced and sound economic and social development of the country especially in the
rural areas, is one of the major projects of the present administration;

WHEREAS, last 20 March 2007, RA 9400 was signed into law which categorically grants tax
incentives to Clark SEZ, Subic Special Economic and Freeport Zone, John Hay SEZ, Poro Point SEZ,
and other SEZ to be created under RA 7227, as amended;

WHEREAS, Section 12 of RA 9400 repealed Section 50 of RA 7916, thereby recognizing that
RA 7916, as amended, can now be made applicable to some SEZ created pursuant to RA 7227, as
amended;

WHEREAS, the amendments in RA 9400 provides for the applicability of RA 7916, as amended,
and the role of the Philippine Economic Zone Authority (PEZA) with respect to SEZ that may be
created in Bataan, Zambales as well as in John Hay SEZ, but did not so provide for the applicability of
RA 7916, as amended, in the Subic SEZ, Poro Point Freeport Zone, and the new Clark Freeport Zone;

WHEREAS, there is a need to make RA 7916, as amended, also applicable to the Clark Freeport
Zone in areas to be specifically designated by the President by way of Proclamation;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, by
virtue of the powers vested in me by law, hereby order:

Section 1. Duly registered business enterprises that will operate in special economic zones to be
created by proclamation inside the Clark Freeport Zone shall be entitled to the same tax and duly
incentives as provided for under R.A. 7916, as amended: Provided that for purpose of administering
these incentives, the Philippine Economic Zone Authority shall register, regulate and supervise all
registered enterprises within the said special economic zones.

Section 2. All laws, decrees, proclamations, rules and regulations or other issuances or parts
thereof inconsistent with the provisions of this Executive Order are hereby repealed or modified
accordingly.

Section 3. This Executive Order shall take effect immediately upon its publication in a national
newspaper of general circulation.

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Done, in the City of Manila, this 26th day of April, in the year of our Lord Two Thousand and
Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 620

RATIONALIZING AND SPEEDING UP THE DEVELOPMENT OF THE EAST AND
NORTH TRIANGLES, AND THE VETERANS MEMORIAL AREA OF QUEZON CITY, AS
A WELL-PLANNED, INTEGRATED AND ENVIRONMENTALLY BALANCED MIXED-USE

DEVELOPMENT MODEL

WHEREAS, the Metro Manila Development Authority’s Physical Development Framework Plan
for Metro Manila (1995 - 2010) designates the North and East Triangles as Urban Promotion Area,
and the Quezon City Comprehensive Land Use Plan cites the North Triangle as an “Area of Growth/
Influence”;

WHEREAS, the properties within the area of 250 hectares tangent to North Avenue and bounded
by Epifanio Delos Santos Avenue, East and North Avenues, have become disparately assigned for
diverse uses that are not complementary, making the same vulnerable to urban blight and therefore
do not reflect the best use of the land, given their present and projected market values as well as their
strategic location;

WHEREAS, the collective properties therein have the biggest potential for large-scale development
within the National Capital Region that can provide the significant stimulus needed by the government
to help put the country at the forefront of global investment and business interest;

WHEREAS, the market prospects of the East and North Triangles are significant, thereby
convincing international development and financing institutions like the World Bank (WB) and the
Asian Development Bank (ADB) to fund, as in fact the WB is funding, the development of a framework
plan as well as a master plan for the development of these Triangles into a highly integrated,
transportation, environment, commercial and residential model;

WHEREAS, this urban development model can serve as a basic guide for the government to
use in creating more areas of competitive advantage serving as hubs of intense economic growth in
different areas nationwide;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

Section 1. Creation. There is hereby created the Urban Triangle Development Commission (Tri
Dev Commission) to be composed of the following:

a. A representative from the Office of the Mayor of Quezon City, as Chairman;

b. The General Manager of the National Housing Authority, as member; and

c. A representative from the Office of the President, as member.

Section 2. Purposes and Powers. The Tri Dev Commission shall pursue the following objectives,
which shall in effect also constitute its powers:

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a. Review, integrate and streamline plans, programs, allocation schemes, land use and other
property management arrangements affecting properties within the North and East
Triangles of Quezon City, as mandated by earlier proclamations, other laws and contracting
arrangements, using as main reference materials the World Bank Study on the "'Preparation
of a Comprehensive Framework Plan for the Development of a Central Business District in
Quezon City” and the ensuing World Bank Master Plan for the Central Business District in
Quezon City;

b. Formulate, plan and program the development components, processes and strategies, as well
as determine the land-use mix and resource applications necessary to achieve the development
objectives for the area, as harmonized with the aforesaid World Bank Study;

c. Manage, control and direct the implementation of the development program;

d. Formulate deal structures with owners of properties in the 250-hectare development area,
that will hasten the development of the envisioned mixed-use development model, without
prejudice to their equity interest;

e. Study the proper application of political and financial resources of both the National
Government and the Focal Government Unit in escalating implementation initiatives, as well
as coordinate in the planning and execution of projects;

f. Form a Technical Working Group who shall provide the Tri Dev Commission with the
needed technical assistance in the preparation of plans and programs as well as in executing
implementation strategies, therefore serving as the infrastructure of people needed to support
all stages of the development program.

Section 3. Initial Funding. The Tri Dev Commission shall, for its initial costs of operations, have
such funds as may be approved by the Office of the President upon recommendation of the Department
of Budget and Management (DBM).

Section 4. Repealing Clause. All other executive orders, proclamations, issuances, rules and
regulations or parts therefor which are inconsistent with the provisions of this Executive Order, are
hereby repealed, amended or modified accordingly.

Section 5. Effectivity. This Executive Order shall take effect immediately upon its publication in a
national newspaper of general circulation.

DONE in the City of Manila, this 4th day of May, in the year of Our Lord, Two Thousand Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

EXECUTIVE ORDER NO. 620-A

EXPANDING THE COMPOSITION OF THE URBAN TRIANGLE DEVELOPMENT
COMMISSION AND CLARIFYING ITS STRUCTURE AND FUNCTIONS, THEREBY
AMENDING EXECUTIVE ORDER NO. 620, SERIES OF 2007

WHEREAS, Executive Order No. 620 dated May 4, 2007, created the Urban Triangle
Development (TriDev) Commission and aims to rationalize and speed up the development of the East
and North Triangles and the Veterans Memorial area of Quezon City, as a well-planned, integrated and
environmentally balanced, mixed-use development model;

WHEREAS, there is a need to guide and improve the allocation, utilization, management and
development of the national government’s land resources, as well as to ensure their optimum use, under
the principles of economic growth and efficiency, social equity and justice;

WHEREAS, the emerging and projected developments in the area necessitate a comprehensive
plan for urban development, business development and marketing that integrates the highest and best
use of the properties under a re-planned, mixed-use scheme;

WHEREAS, the composition of the Tri-Dev Commission can be strengthened by expanding its
membership and clarifying its scope of responsibilities, to enable it to carry out its mandate more
effectively.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Coverage. The following areas shall be covered by the proposed Quezon City
Central Business District (QC-CBD):

a. East and North Triangles;

b. Veterans Memorial Medical Center Area;

c. Ninoy Aquino Parks and Wildlife.

SECTION 2. Expanding the Composition of the Urban Triangle Development Commission. The
Urban Triangle Development (TriDev) Commission is hereby expanded to be composed of the
following:

a. Chairman of the Housing and Urban Development Coordinating Council (HUDCC), and to
sit as Chairman of the Tri-Dev Commission;

b. A representative from the Office of the Mayor of Quezon City, as Co-Chairman;

c. General Manager of the National Housing Authority, as member;

d. A representative from the Office of the President as member.

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SECTION 3. Functions of the Tri-Dev Commission. The Commission shall have the following
powers and purposes.

a. Oversee the preparation of the Master Development Plan for the 250 hectare area of the QC-
CBD, for the purpose of transforming this into a well-planned, integrated and environmentally
balanced, mixed-use development.

For this purpose, the TriDev Commission shall be tasked to:

1. ) Formulate plans and programs mutually beneficial to all concerned, for the development
components, processes, and strategies, as well as determine the best use of the properties
covered by EO 620, in line with the development objectives of the proposed QC-CBD,
subject to the proprietary rights of the respective owners.

2. ) Review, evaluate and/or integrate already available urban development plans from the
national government and the Quezon City local government, including the World Bank
Study on the “Preparation of a Comprehensive Framework Plan for the Development of a
Central Business District in Quezon City.”

3. ) Form a Technical Working Group who shall provide the Tri-Dev Commission with the
needed technical assistance in the preparation of the Master Development Plan, as well as
in executing implementation strategies needed to support all stages of the QC-CBD project.

b. Manage, control and direct the implementation of the Master Development Plan, including the
following:

1. ) Formulate deal structures and enter into agreements with owners of properties in the
QC-CBD area, without prejudice to their proprietary rights, including between and among
Commission members;

2. ) Recommend the issuance of executive orders, proclamations and other issuances for the
re-planning, re-classification or reversion of the properties for mixed-use development.

3. ) Formulate a viable resettlement program for qualified informal settler families in the
250-hectare QC-CBD project area.

4. ) Monitor and manage the implementation of the different QC-CBD sub-projects, in
accordance with the approved Master Development Plan.

5. ) Vest the Chairmen of the Commission with the responsibility and the power to ensure
that all agreements for the implementation of the Master Development Plan conform to the
overall developmental thrusts of the National Government.

SECTION 4. Fund for Socialized Flousing Program. All revenues representing the share of the
National Housing Authority as land owner of properties within the QC-CBD area, from the sale, lease,
joint venture and other schemes, shall be used solely for Socialized Housing Programs. A separate Trust
Fund shall be established for this purpose.

SECTION 5. Support from other Agencies. All departments, bureaus, offices, government
agencies and instrumentalities of the national government are hereby mandated to provide the
necessary support and expertise in facilitating the implementation of the Master Development Plan for
the QC-CBD.

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SECTION 6. Initial Funding. The Tri-Dev Commission shall, for its initial costs of operations,
have such funds as may be approved by the Office of the President, upon the recommendation of the
Department of Budget and Management.

SECTION 7. Repeal. All other executive orders, proclamations, issuances, rules and regulations,
or parts thereof, that are inconsistent with the provisions of this Executive Order, are hereby repealed,
amended or modified accordingly.

SECTION 8. Effectivity. This Executive Order shall take effect immediately, upon its publication
in a national newspaper of general circulation.

Done in the City of Manila, this 11th day of September, in the year of Our Lord, two thousand
and seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 621

PLACING THE PHILIPPINE CHARITY SWEEPSTAKES OFFICE UNDER THE SUPERVISION
AND CONTROL OF THE DEPARTMENT OF HEALTH

WHEREAS, on 27 March 2006, the President issued Executive Order No. 520 placing the
Philippine Charity Sweepstakes Office (PCSO) under the supervision and control of the Office of the
President;

WHEREAS, the Department of Health (DOH) is the principal government agency responsible for
the formulation, planning, implementation, and coordination of policies and programs in the field of
health;

WHEREAS, the PCSO is one of the government agencies tasked with raising and providing funds
for health programs, medical assistance and services, and charities of national character;

WHEREAS, in order to facilitate coordination of policies and programs between these agencies, it
is practical to place the PCSO under the supervision and control of the DOH;

WHEREAS, Book III, Title III, Chapter 10, Section 31(3) of the Administrative Code of the
1987 authorizes the President to “transfer any agency under the Office of the President to any other
department or agency xxx.”

NOW, THEREFORE I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. The Philippine Charity Sweepstakes Office shall hereby be placed under the
supervision and control of the Department of Health.

SECTION 2. Executive Order No. 520, series of 2006, is hereby repealed. All other orders,
issuances, rules and regulations or parts thereof inconsistent with this Executive Order are hereby
repealed or modified accordingly.

SECTION 3. This Executive Order shall take effect immediately.

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DONE in the City of Manila, this 8th day of May, in the year of our Lord, Two Thousand and
Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 622

REPEALING EXECUTIVE ORDER NO. 460 DATED SEPTEMBER 2, 2005, ENTITLED
“AMENDING EXECUTIVE ORDER NO. 119 (S. 2002) AND FOR OTHER PURPOSES”

WHEREAS, Section 60 of Republic Act (R.A.) No. 9136, otherwise known as the “Electric
Power Industry Reform Act of 2001 (EPIRA)” provided that all outstanding financial obligations of
electric cooperatives (ECs) to the National Electrification Administration (NEA) and other government
agencies incurred for the purpose of financing the rural electrification program (REP) shall be assumed
by the Power Sector Assets and Liabilities Management Corporation (PSALM) in accordance with the
program approved by the President of the Philippines;

WHEREAS, Rule 31, Section 6, of the Implementing Rules and Regulations (IRR) of EPIRA
provided that “nothing in this Rule however, shall mean that ECs are not obliged to pay the NEA with
respect to all outstanding financial obligations assumed by PSALM, if the amortization cost component
of the EC’s tariff is still collected from the consumers”;

WHEREAS, pursuant to Section 60 of EPIRA, Executive Order (E.O.) No. 119 was issued on
August 28, 2002 which provided for the assumption by PSALM of all outstanding rural electrification
(RE) loan obligations of ECs;

WHEREAS, E.O. No. 119 provides under Section 5 thereof that the assumption by PSALM
of the RE loans shall be effective only upon compliance with the terms and conditions enumerated
therein which include, among others, the approval by the Energy Regulatory Commission (ERC)
of the reduction in the EC rates commensurate with the resulting savings due to the removal of the
amortization payments on the RE loans;

WHEREAS, on September 2, 2005, E.O. No. 460, amending E.O. No. 119, was issued mandating
that the effective date of the assumption of the RE loans by PSALM shall retroact to the date of
effectivity of EPIRA on June 26, 2001;

WHEREAS, the ERC issued on October 11, 2002, its “Guidelines for the Implementation of the
Reduction in Rates of the EC due to the Condonation of Debt,” which was amended on November
15, 2002, which governs the applications of the ECs with the ERC for the approval of the reduction in
rates in compliance with Section 60 of EPIRA and E.O. No. 119 with prayer for provisional authority
(“PA”);

WHEREAS, the ERC has issued during the period from March 3, 2003 to January 2004, the
corresponding PAs to reduce rates to each and every EC, or a total of one hundred eighteen (118) ECs,
thereby making the date of issuance thereof as the effective date of the assumption by PSALM of the
RE loans of the said ECs to NEA and other creditor government agencies;

WHEREAS, to strengthen the financial viability of the ECs, it is best to maintain that the
assumption by PSALM of the RE loans shall be effective upon approval by the ERC of the reduction in
the EC rates commensurate with the resulting savings due to the removal of the amortization payments
on RE loans or upon the issuance by the ERC of the PAs to reduce rates to each and every EC;

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NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Executive Order No. 460 dated September 2, 2005 is hereby repealed. The
provisions of Executive Order No. 119 dated August 28, 2002 which were earlier amended by
Executive Order No. 460 are thus hereby reinstated.

SECTION 2. All orders, issuances, rules and regulations or parts thereof inconsistent with this
Executive Order are hereby repealed or modified accordingly.

SECTION 3. This Executive Order shall take effect immediately.

DONE in the City of Manila, this 9th day of May, in the year of Our Lord, Two Thousand and
Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 623

AFFIRMING THE CONTINUING REGULATORY AND SUPERVISORY AUTHORITY OF THE
NATIONAL ELECTRIFICATION ADMINISTRATION, UNDER REPUBLIC ACT NO. 9136 AND
PRESIDENTIAL DECREE NO. 269 (AS AMENDED BY PRESIDENTIAL DECREE NO. 1645),
OVER ALL ELECTRIC COOPERATIVES, REGISTERED OR NOT REGISTERED WITH THE
COOPERATIVE DEVELOPMENT AUTHORITY OR THE
SECURITIES AND EXCHANGE COMMISSION

WHEREAS, Republic Act (R.A.) No. 9136, otherwise known as the “Electric Power Industry
Reform Act of 2001 (EPIRA)”, took effect on June 26, 2001;

WHEREAS, Section 57 of R.A. No. 9136 provides that:

“Sec. 57. Conversion of Electric Cooperatives. - Electric cooperatives are hereby given the
option to convert into either stock cooperative under the Cooperatives Development Act
(CDA) or stock corporation under the Corporation Code, x x x. “

WHEREAS, Rule 7, Section 7, Paragraph (c) (i) of the Implementing Rules and Regulations
(IRR) of EPIRA, provided that the conversion and registration of electric cooperatives (ECs) shall be
implemented in the following manner:

“(i) ECs shall, upon approval of a simple majority of the required number of turnout
of voters as provided in the Guidelines in the Conduct of Referendum (Guidelines), in a
referendum conducted for such purpose, be converted into a Stock Cooperative or Stock
Corporation and thereafter shall be governed by the Cooperative Code of the Philippines or
the Corporation Code. The NEA, x x x, shall promulgate the guidelines in accordance with
Section 5 of Presidential Decree No. 1645.”

WHEREAS, Rule 7, Section 7, Paragraph (c), (ii), IRR of EPIRA provided further that:

“(ii) ECs converted into Stock Corporations shall be registered with the SEC in
accordance with the Corporation Code, while those converted into Stock Cooperatives, shall
be registered with the CDA: Provided, however, That the ECs which opt to remain as Non-
Stock Cooperatives shall continue to be registered with the NEA and shall be governed by
the provisions of Presidential Decree No. 269.”

WHEREAS, the foregoing provisions of R.A. No. 9136 and its IRR superseded Articles 122
and 128 of R.A. No. 6938, otherwise known as the “Cooperative Code of the Philippines”, insofar
as registration and conversion of ECs to stock cooperative under R.A. No. 6938 within three (3)

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years from the effectivity of the Rules and Regulations promulgated by NEA and the Cooperative
Development Authority (CDA) is concerned;

WHEREAS, Articles 122 and 128 of R.A. No. 6938 refer only to ECs that opted to register with
CDA pursuant to R.A. No. 6938 and not to ECs that opted to register with CDA pursuant to Section
57 of R.A. No. 9136;

WHEREAS, consistent with R.A. No. 9136, NEA shall continue to exercise its authority under
Section 3 and 5 of Presidential Decree (P.D.) No. 1645 over all ECs, registered or not registered with
the CDA or the Securities and Exchange Commission (SEC);

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. The ECs are hereby given the option to convert to stock corporations and
be registered under the Corporation Code, or to stock cooperatives and be registered under the
Cooperative Code of the Philippines, following the National Electrification Administration (NEA)
Guidelines.

SECTION 2. The NEA shall continue to exercise its regulatory and supervisory authority
(institutional, financial, and technical) under Republic Act (R.A.) No. 9136; Presidential Decree (P.D.)
No. 269, as amended by P.D. No. 1645, specifically Section 3 and 5 thereof, over all ECs, registered
or not registered with the Cooperative Development Authority (CDA) or the Securities and Exchange
Commission (SEC).

SECTION 3. All orders, issuances, rules and regulations or parts thereof inconsistent with this
Executive Order are hereby repealed or modified accordingly.

SECTION 4. This Executive Order shall take effect immediately.

DONE in the City of Manila, this 9th day of May, in the year of Our Lord, Two Thousand and
Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 624

CREATING THE PRESIDENTIAL ANTI-SMUGGLING GROUP TO APPREHEND, SEIZE,
INVESTIGATE AND PROSECUTE ACTS INVOLVING SMUGGLING, UNLAWFUL
IMPORTATION AND OTHER SIMILAR VIOLATIONS, AND PROVIDING MEASURES TO
CURTAIL SMUGGLING AND EXPEDITE SEIZURE PROCEEDINGS

WHEREAS, smuggling, unlawful importation and other similar violations continue to undermine
the national interest and security;

WHEREAS, the prevention of smuggling and other related fraudulent practices against existing
laws is one of the urgent concerns of the administration, an essential requirement in fact, for the success
of the government’s economic reforms;

WHEREAS, the creation of a presidential body directly mandated and empowered to investigate
and prosecute smuggling and other unlawful importation is necessary to effectively counteract this
form of activities which are inimical to the economy;

WHEREAS, the Administrative Code of 1987 empowers the President with the continuing
authority to reorganize the Office of the President and to transfer functions from one department or
agency to another;

NOW, THEREFORE, I, GLORIA MACAPAGAL ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

Section 1. Creation of Presidential Anti-Smu^glin^ Group . - There is hereby created a Presidential
Anti-Smuggling Group (PASG), under the control and supervision of the Office of the President,
principally to curtail smuggling, unlawful importation and other similar acts.

Section 2. Composition . - The PASG shall be composed of elements from the Philippine National
Police (PNP), Philippine Coast Guard (PCG), National Food Authority (NFA), Philippine Maritime
Authority (MARINA), Philippine Ports Authority (PPA), Philippine Navy (PN), Bureau of Food and
Drugs (BEAD), and Bureau of Customs (BOC), as well as from other government agencies that may be
needed by the PASG in the performance of its functions, as determined by the Head of PASG.

The PASG shall be headed by a Presidential Assistant for Anti-Smuggling (with the rank of
Undersecretary) to be appointed by the President. He shall be assisted by an Assistant Secretary to be
appointed by the President, upon recommendation of the Head of PASG.

Section 3. Scope/furisdiction . - The operation of the PASG in the performance of its functions is
nationwide in scope.

Section 4. Powers and Functions . - The PASG shall have the following powers and functions:

1. To adopt appropriate measures in preventing smuggling and other similar acts in violation of
existing laws;

2. To effect searches, seizures and arrests in conformity with the provisions of the Tariff and
Customs Code of the Philippines, as amended, and other related laws;

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3. To conduct intelligence and counter-intelligence activities on smuggling and other unlawful
importation, to include but not limited to, the monitoring of situations, circumstances and/
or activities of individual, groups and entities who are reasonably believed to be involved in
smuggling activities;

4. To enlist the assistance of any department, bureau, office or agency or any instrumentality
of the government, principally from the government agencies mentioned in Section 2 of this
Executive Order, including government-owned or controlled corporations, to carry out its
functions, including the use of their respective personnel, facilities and resources if necessary;

5. To select and recruit personnel from the government agencies mentioned in Section 2 of this
Executive Order, for assignment to the PASO, with the conformity of the respective agencies
concerned, which should not at any time be unreasonably denied;

6. To secure copies of documents pertaining to the nature and particulars of the commodity or
goods subject of importation, i.e. quantity or volume, technical or qualitative specifications,
port of destination/estimated date of arrival in the Philippines, among others, from government
agencies concerned, including but not limited to the BOC and the Bureau of Import Services,
and also from non-government sources like pre-shipment companies at the port of origin, and
commercial banks in accordance with existing laws, rules and regulations;

7. To conduct verification with the BOC of documents pertaining to payment of duties and taxes
of imported commodities and goods;

8. To inspect warehouses where seized commodities are stored to ensure that such commodities
are not being ferreted out or removed without proper documentation; and

9. To suppress and prevent all other economic frauds, as may be directed by the President.

Section 5. Acts Covered . - The PASG shall be authorized and empowered to exercise its functions
in any or all acts involving the following:

a) Smuggling, illegal importation and customs fraud or other similar acts committed by any
individual, groups or any juridical person or entity; and

b) Other cases of violations of the Tariff and Customs Code, as amended, and related laws,
pertinent provisions of the Revised Penal Code, as amended, as well as violations of other
pertinent laws, rules and regulations.

Section 6. Or^anization/Support . - The PASG shall organize the technical, administrative and
special services staffs from among the personnel assigned or detailed to it pursuant to Section 2 hereof,
and assign their respective functions.

Section 7. Special Team of Prosecutors . - To assist the PASG in the expeditious prosecution of
criminal and other cases covered under this Executive Order, a Special Team of Prosecutors (Team)
from the Department of Justice shall be assigned to and be under the supervision of the PASG. The
Team shall have the following powers and duties:

1. To evaluate evidence gathered by the PASG and to determine whether or not violation of the
Tariff and Customs Code, as amended, other related laws and regulations, and/or pertinent
provisions of the Revised Penal Code, as amended, among others, has been committed;

2. To initiate and conduct preliminary investigations and to file and prosecute the appropriate
administrative and criminal charges against person(s) responsible for smuggling and violation
of customs laws or other related laws and regulations; and

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3. The PASG is authorized to apply for the issuance of search warrant, warrant of seizure and
detention in appropriate cases and institute the necessary criminal, administrative and/or civil
action in relation thereto.

The Team will be selected and recruited in accordance with the provisions of paragraphs 4 and 5,
Section 4 of this Executive Order.

Section 8. Entitlement and Privileges . - In view of the sensitive nature of their functions as
herein provided, the members of the Special Team of Prosecutors shall be entitled to transportation,
accommodation and per diems when performing their functions outside of the PASG in accordance
with existing laws, rules and regulations.

They shall also be entitled to hazard pay/monthly allowance of Five Thousand Pesos (P5,000.00)
to be drawn from the budget of the PASG.

Section 9. Funding . - Subject to the periodic audit by the Commission on Audit, the PASG shall
be provided with an initial annual allocation of Fifty Million Pesos (P50 Million) to be drawn from
the President’s Contingency Fund and/or from government’s savings. Thereafter, appropriations for the
succeeding years shall be incorporated in the annual budget of the Office of the President.

Section 10. Reporting . - The Head of PASG shall submit to the Office of the President periodic
reports of its activities and performance for the information and guidance of the President.

Section 11. Repealing Clause . - Executive Order No. 509 dated March 15, 2006 is hereby
repealed. All other orders, issuances, rules and regulations, or parts thereof which are inconsistent with
this Executive Order are hereby repealed or modified accordingly.

Section 12. Effectivity . - This Executive Order shall take effect immediately.

DONE in the City of Manila, this 21st day of May, in the year of our Lord, Two Thousand Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 625

AMENDING BIR EXECUTIVE ORDER NO. 175 OF PRESIDENT JOSEPH
ESTRADA AND FOR OTHER PURPOSES

WHEREAS, for 2006, BIR was short of P20 billion, but just for the first two months of 2007
(January and February), the BIR already incurred P10.3 shortfall. The 2006 and 2007 deficit continued
from the 2005 deficit of Pll billion;

WHEREAS, for April 2007 which is usually the highest payment of income tax, collection is
already compromised with recorded input tax VAT refund of over P35 billion for April;

I, therefore, Gloria M. Arroyo, do hereby order:

Section 1. The Run After Tax Evaders (RATE) Program shall be institutionalized into a regular
division in the BIR’s Enforcement Service of the Bureau of Internal Revenue (BIR);

Section 2. There is hereby created a Revenue Enforcement Committee to be headed by the Deputy
Commissioner for Legal, Inspection and Enforcement Group;

Section 3. The Large Taxpayers is hereby placed under the Office of the Deputy Commissioner
for Audit and Fraud Investigation. RDO Cesar Lim is hereby designated to head the Large Taxpayers
Service, subject to the rules of the Commission on Elections.

Section 4. RATE and tax fraud cases shall be given priority in tax investigations in the Large
Taxpayers’ Service and the district offices;

Section 5. Each RDO is hereby required to file one RATE case per month;

Section 6. BIR Executive Order (EO) No. 175 of President Joseph Estrada is hereby amended
by reverting it to the previous EO No. 430 which would effectively promote industry audit and
benchmarking methods in the national and special investigations of the Bureau;

Section 7. The Inspection Group is hereby deputized to proceed administratively against BIR
officials and employees with cases in the Revenue Integrity Protection Services (RIPS), alongside the
criminal Ombudsman cases of the Department of Finance.

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DONE in the City of Manila, this 4th day of April, in the Year of Our Lord Two Thousand and
Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

EXECUTIVE ORDER NO. 625-A

ADMINISTERING THE RUN AFTER TAX EVADERS (RATE) PROGRAM THROUGH THE
OFFICE OF THE DEPUTY COMMISSIONER FOR LEGAL AND INSPECTION GROUP OF
THE BUREAU OF INTERNAL REVENUE, REPEALING OTHER PROVISIONS OF EXECUTIVE
ORDER NO. 625, AND FOR OTHER PURPOSES

WHEREAS, there is a need to strengthen the prosecutorial and enforcement mechanism of the
government’s national internal revenue generation program;

WHEREAS, organizational streamlining is critical to the continuing success of the Run After Tax
Evaders (RATE) Program of the Bureau of Internal Revenue;

WHEREAS, President has the continuing authority to reorganize the administrative structure of
the Executive Department;

NOW, THEREEORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

Section 1. The Run After Tax Evaders (RATE) Program shall be placed under the administration
of the Office of the Deputy Commissioner for Legal and Inspection Group of the Bureau of Internal
Revenue.

Section 2. All other provisions of Executive Order No. 625 are hereby repealed.

Section 3. All other executive issuances or portions thereof inconsistent with this Executive Order
are hereby revoked, amended, or modified accordingly.

Section 4. This Executive Order shall take effect immediately.

Done in the City of Manila, this 12th of June, in the year of the Lord, Two Thousand and Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601
Malacanang Records Office.

700]. Manila:

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 626

STRENGTHENING THE GOVERNMENT’S INTERFAITH PROGRAM THROUGH THE
CREATION OF A NATIONAL COMMITTEE

WHEREAS, the Philippine Constitution articulates a policy of peace, cooperation and amity with
all nations as well as maintain peace and order in the country for the enjoyment by all of the blessings
of democracy;

WHEREAS, the Government affirms the individual’s right to freedom of religion and worship
as well as the free exercise thereof as enunciated in the 1987 Constitution, and that the country’s
participation in interfaith and its related activities does not, in any way, favor or discriminate against
any particular religion;

WHEREAS, the Republic of the Philippines is currently at the forefront of interfaith dialogue in
the world community, elevating the latter as a legitimate tool for peace and understanding in the United
Nations through the successful lobbying and passing of UN Resolution A/RES/59/23 (Promotion of
Interreligious Dialogue);

WHEREAS, there is a need to consolidate, rationalize, and ensure consistency of the country’s
policies and position in the various interfaith initiatives and fora in and outside the country;

WHEREAS, interfaith initiatives are crucial in the promotion of peace and harmony, cultural
tolerance, ethical standards and human rights, as well as the development of moral, spiritual and
intellectual capacities for the upholding and enhancement of human dignity;

NOW, THEREFORE, I, GLORIA MACAPGAL ARROYO, President of the Philippines, by virtue
of the powers vested in me by law, do hereby order the following:

Section 1. Creation of the National Committee on Interfaith Cooperation. There is hereby created
the National Committee on Interfaith Cooperation, which shall perform the following functions:

1. Formulate, consolidate, rationalize and recommend Philippine policies and position on various
interfaith initiatives in and outside of the country;

2. Articulate and ensure the consistency of the Philippine policy and position in the different local
and international fora, as well as in all related activities on interfaith dialogue;

3. Ensure that the Philippines is well represented and maintain its continued leadership and
effective participation in the various interfaith initiatives and activities in the international
arena/fora;

4. Establish, strengthen and sustain linkages and partnerships with various faith-based and
interfaith organizations throughout the country. In this regard, regular consultations shall be
conducted with civil society groups and religious sectors;

5. Facilitate the development, implementation and monitoring of the Philippine Plan of Action on
Interfaith Cooperation; and,

6. Exercise such other functions as may be assigned by the President.

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Section 2. Composition. The Committee shall be composed of designated officials from the
following departments or agencies:

Section 3. Support Structure. Other Government offices/agencies may be tapped as necessary to
assist the Committee in the preparation of the country’s participation in interfaith initiatives, as well as
in the formulation of the Philippine positions and recommendations.

Section 4. Creation of Interfaith Desks and Focal Points. All departments, bureaus, offices,
agencies and instrumentalities of national government, including government owned or controlled
corporations and government financial institutions are hereby enjoined to establish interfaith desks
and designate focal points who shall:

1. Undergo orientation and training on interfaith cooperation;

2. Take charge of interfaith-related programs and projects in their respective offices;

3. Coordinate with and support the Committee in all its undertaking as necessary;

4. Facilitate the establishment of interfaith prayer centers in their respective offices.

Section 5. Funding. The Department of Budget and Management is hereby directed to release
an initial amount of Five Million Pesos (PhP5,000,000.00) from the President’s Contingent Fund to
initially cover the expenses of the Committee. Fund requirements of the Committee for the succeeding
years shall be included in the OPAPP Budget.

Section 6. Repealing Clause. All issuances, rules and regulations or parts thereof, inconsistent
with this Executive Order are hereby repealed, amended or modified accordingly.

Section 7. Effectivity. This Executive Order shall take effect immediately.

Done in the City of Manila, this 4th day of June, in the year of our. Lord Two Thousand and
Seven.

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

Department of Foreign Affairs (DFA)

Office of the Presidential Adviser on The Peace Process
Presidential Council on Values Formation

Chair

Co-Chair

Secretariat

(Sgd.) GLORIA MACAPAGAL-ARROYO

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 627

MODIFYING THE NOMENCLATURE AND MOST-FAVORED NATION (MEN) RATES
OF DUTY ON VARIOUS AGRICULTURAL PRODUCTS AS PROVIDED FOR UNDER THE
TARIFF AND CUSTOMS CODE OF 1978, AS AMENDED, IN ORDER TO IMPLEMENT THE
PHILIPPINE COMMITMENT ON RICE UNDER THE WORLD TRADE ORGANIZATION
(WTO) AGREEMENT ON AGRICULTURE

WHEREAS, the World Trade Organization (WTO) Agreement on Agriculture embodies the rules
and commitments of WTO members in improving market access and promoting fairer competition in
agriculture;

WHEREAS, Annex 5 of the WTO Agreement on Agriculture, otherwise known as the “special
treatment” provision, provides for restriction on imports of primary sensitive agricultural products
subject to strictly defined conditions;

WHEREAS, the Philippine government applied for a seven (7) year extension of the Special
Treatment on rice under Annex 5 of the World Trade Organization (WTO) Agreement on Agriculture
until 2012;

WHEREAS, Paragraph 9, Section B, Annex 5 of the WTO Agreement on Agriculture mandates
the Philippine government to compensate other WTO member countries by reducing the Most Favored
Nation (MEN) rates of duty on certain agriculture products for the requested seven (7) year extension
of the special treatment on rice;

WHEREAS, the modification and rectifications of Schedule LXXV of the Philippines took effect
on 27 December 2006;

WHEREAS, Section 402 of the Tariff and Customs Code of 1978, as amended, empowers the
President to modify import duties for the promotion of foreign trade.

NOW, THEREFORE, I, GLORIA MACAPAGAL ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. The articles specifically listed in “Annex A” hereof, as classified under Section 104
of the Tariff and Customs Code of 1978, as amended, shall be subject to the rates of import duty in
accordance with the schedule indicated opposite each article.

SECTION 2. The Nomenclature and the rates of import duty on tariff headings not enumerated
and those listed but represented by the symbol “X X X” shall remain in force and in effect.

SECTION 4. All other Presidential issuances, administrative rules and regulations, or parts
thereof, which are inconsistent with this Executive Order are hereby revoked or modified accordingly.

SECTION 5. This Executive Order shall take effect immediately following its complete
publication in the Official Gazette or in a newspaper of general circulation in the Philippines.

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Done in the City of Manila, this 15th day of June, in the year of Our Lord, Two Thousand and
Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Reference: Annex “A”

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 628

CREATING A COMMITTEE ON HARMONIZATION OF VEHICLE STANDARDS AND

REGULATIONS (CHVSR)

WHEREAS, efficient and reliable transportation services constitute a vital supportive system to
national development;

WHEREAS, the harmonization of standards and regulations pertaining to motor vehicles and
its related components and equipment will enhance road safety, decrease pollution, promote energy
conservation and efficiency and redound to the general welfare of the public;

WHEREAS, it is the responsibility of the State to safeguard its citizenry, particularly passengers,
drivers and pedestrians from injuries and damages caused by vehicular accidents;

WHEREAS, Republic Act No. 4136 or the “Land Transportation and Traffic Code” provides,
among others, rules and regulations that prohibit the registration of vehicles that are unfit, unsightly,
unsafe or not conforming to the prescribed minimum standards and specifications;

WHEREAS, Republic Act No. 4109 or the “Philippine Standardization Law” mandates the
review, revision and publication of the standards every two (2) years or as the need arises to ensure
substantial improvement in air quality for the health, safety and welfare of the general public;

WHEREAS, Republic Act No. 8749 or the “Philippine Clean Air Act of 1999” likewise provides
for harmonization of national emission standards with the international standards;

WHEREAS, WP 29 was established on 6 June 1952 as a Working Party on the Construction of
Vehicles under the United Nations Economic Commission for Europe (UN-ECE) and serves as the
World Forum for Harmonization of Vehicle Regulations since March 2000 by initiating and pursuing
actions aimed at the worldwide harmonization and development of technical standards and regulations
for vehicles;

WHEREAS, there are three (3) Agreements under WP 29 which are in pursuance to its objectives
by establishing uniform and simplified standards, procedures and regulations for reciprocal acceptance
and recognition by the world community;

WHEREAS, there is a need for an inter-agency body at the national level that shall coordinate
and integrate efforts and initiatives concerning harmonization of vehicle standards and regulations
in the country, and prepare the country’s eventual participation to the WP 29 and “accession” to its
Agreements;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Creation of the Committee on Harmonization of Vehicle Standards and
Regulations. - There is hereby created the Committee on Harmonization of Vehicle Standards and
Regulations (CHVSR), hereinafter referred to as the Committee, which shall be primarily responsible
for the effective coordination of efforts by various agencies of the government, international

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organizations and the private sector pertaining to the harmonization of vehicle standards and
regulations, including all activities related thereto.

SECTION 2. Composition of CHVSR. - The CHVSR shall be composed of the following:

a. Chairman

b. Vice Chairman

c. Members

Secretary, Department of Transportation and Communications
(DOTC)

Secretary, Department of Trade and Industry (DTI)

Secretary, Department of Environment and Natural Resources
(DENR);

Secretary, Department of Energy (DOE);

Secretary, Department of Science and Technology (DOST);

Secretary, Department of the Interior and Local Government
(DILG);

Representative from the Academe; and

Representatives from the Private Sector (automotive industry,
transport and motorists).

The CHVSR may form Task Forces, Technical Working Groups or Sub-Committees tasked to
perform specific duties and assignments which shall be composed of representatives from government
agencies concerned and private sector or non-governmental organizations.

SECTION 3. Secretariat. - A Secretariat is hereby created to assist the Committee, to be composed
of representatives from the DTI Bureau of Product Standards and the Department of Transportation
and Communications/Land Transportation Office (DOTC/LTO).

SECTION 4. Functions of the CHVSR. - The CHVSR shall initiate and pursue the formulation of
reasonable and workable plans and programs aimed at preparing the country’s eventual participation
to the WP 29 and accession to its “Agreements.”

Specifically, the Committee shall perform the following functions:

1. Review the conformity of existing Philippine National Standards and other relevant laws and
regulations with current international rules and procedures as well as technical regulations;

2. Identify, classify and prioritize implementation of vehicle and vehicle parts’ standards;

3. Identify safety regulations for possible harmonization based on UN-ECE regulations;

4. Identify and establish the institutional and technical infrastructure requirement to enhance
participation to WP 29;

5. Consult and coordinate with the Department of Foreign Affairs (DFA) and other bodies
concerned concerning the country’s accession to relevant UN Agreements and Conventions;

6. Submit an annual report of its activities and accomplishments to the President; and

7. Perform such other duties and functions which may be necessary in the attainment of the
objectives of WP 29, and such other acts as may be necessary and proper to implement this
Executive Order.

SECTION 5. Funding. - The funds to support the operations and activities of the Committee shall
be sourced from the special road safety and special vehicle pollution control funds administered by the
Road Board created under Republic Act No. 8794 or the “Motor Vehicle User’s Charge Law” and such
other funding sources as may be recommended by the Department of Budget and Management (DBM).

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SECTION 6. Repealing Clause. - All executive issuances, orders, rules and regulations or parts
thereof which are inconsistent with the provisions of this Executive Order are hereby repealed,
amended or modified accordingly.

SECTION 7. Effectivity. - This Executive Order shall take effect fifteen (15) days after its
publication in a national newspaper of general circulation.

DONE in the City of Manila, this 20th day of June, in the year of Our Lord, Two Thousand and
Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 629

DIRECTING THE PHILIPPINE RECLAMATION AUTHORITY TO CONVERT THE SANGLEY
POINT, CAVITE CITY INTO AN INTERNATIONAL LOGISTICS HUB WITH MODERN
SEAPORT AND AIRPORT THRU AN ENABLING RECLAMATION COMPONENT

WHEREAS, the Province of Cavite has been playing a major role in the economic development of
inputs of the economic zones and industrial estates;

WHEREAS, there is a need to provide infrastructures for more efficient and cheaper
transportation of inputs and outputs of the industrial goods to make them globally competitive;

WHEREAS, one of the major infrastructure projects that is necessary is the provision of an
international container port complex that would include an airport and seaport in Sangley Point,
Cavite City which would maximize the economic utility of the R-I Expressway Extension now
undergoing construction;

WHEREAS, the viability of the Project to a large extent will be enhanced by the enabling
reclamation in the portions of Bacoor and Canacao Bays to provide a significant expansion district to
the limited land area of Cavite City;

WHEREAS, the Philippine Reclamation Authority is the government agency vested with the
power to approve reclamation projects under Executive Order No. 543 dated 24 June 2006 and
undertake infrastructure and facilities in the reclamation area by virtue of Presidential Decree No. 1084,
as amended;

WHEREAS, the planning, implementation and operation of the Project shall demand the multi-
disciplinary expertise and experience that shall be tapped from various government agencies and the
private sector;

WHEREAS, the City and Provincial Governments of Cavite in the past were supportive of this
Project to enhance the development of Cavite City and provide employment to the residents of the
Province of Cavite;

WHEREAS, the government encourages private sector initiatives in the implementation of its
project.

NOW, THEREEORE, I, GLORIA MACAPAGAL ARROYO, President of the Philippines, by
virtue of the powers vested in me by law, do hereby order the following:

SECTION 1. There is hereby Created the Executive Committee for the Development of Sangley
Point into an International Logistic Hub to oversee the planning and implementation of the Project,
composed of the following:

Chairman - Philippine Reclamation Authority

Co-Chairman - Representative of the Office of the Mayor of Cavite City

Members - Department of Transportation and Communications

Department of National Defense

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National Economic and Development Authority
Department of Trade and Industry
Department of Environment and Natural Resources
Department of Public Works and Elighways
Philippine Economic Zone Authority

SEC. 2. The Philippine Reclamation Authority is hereby directed to develop the Sangley Point into
an International Logistics Hub with Container Port and Airport Complex and an Economic Processing
Zone with Cyber or Technoparks through a private sector joint venture or Build-Operate-Transfer
(BOT) scheme.

SEC. 3. An Inter-Agency Technical Committee composed of technical representatives of the
Executive Committee shall assist the Philippine Reclamation Authority in the evaluation of joint
venture/BOT project proposals, monitoring of the actual development/implementation of the
Project, assist in the resolution of all issues and problems arising in the project to ensure all aspects
of development from relocation of informal settlers/livelihood program, waste management,
environmental aspects, reclamation and port development, drainage facilities are in conformance with
existing laws and engineering standards.

SEC. 4. Responsibilities. Subject to existing and pertinent laws, rules and regulations, the agencies
shall be given specific responsibilities in line with their respective expertise, powers and functions which
shall include but not limited to the following:

a. Evaluation of project proponents who will be invited to submit joint venture/BOT proposals
which would include the preparation of the feasibility studies, engineering design, land use
plan, environmental studies, soil investigation, tidal studies, hydrographic plans and other
ancillary tasks, as well as financing and undertaking of the project;

b. Conduct of selection/bidding process, evaluation of legal, financial, technical and
environmental aspects of the submitted proposals and shall recommend to the President of the
Philippines the most advantageous bid/offer;

c. Conduct regular consultation meetings with the local residents to apprise them of the plan;

d. Eacilitating the titling of the reclaimed lands;

e. Evaluating the environmental impact study of the proponent for the issuance of the
Environmental Clearance Certificate; and

f. Other functions/responsibilities as may be pertinent or necessary to achieve the objectives of
this E.O.

SEC. 5. Effectivity. This Executive Order shall take effect immediately.

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Done in the City of Manila, this 21st day of June, in the year of our Lord, Two Thousand and
Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 630

TRANSFERRING THE COUNCIL FOR THE WELFARE OF CHILDREN FROM THE OFFICE OF
THE PRESIDENT TO THE DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT

WHEREAS, Presidential Decree No. 603 (1974) created the Council for the Welfare of
Children (CWC) under the Office of the President with the primary function of coordinating and
monitoring the implementation and enforcement of all laws relative to the promotion of child and
youth welfare;

WHEREAS, Executive Order No. 233 (1987) redefined the role, structure and membership of the
Council in order to enable it to more effectively carry out its responsibilities in ensuring the cooperation
of the government agencies concerned with child and youth welfare and development and it was made
as an attached agency of the Department of Social Welfare and Development (DSWD);

WHEREAS, by virtue of Republic Act No. 8980 (2000), the Council shall also function as
the National Early Childhood Care and Development Coordinating Council (NECCDCC) which was
organized to ensure that sustained inter-agency and multi-sectoral collaboration from the national,
provincial, city/municipal to barangay levels to institutionalize a national system for Early Childhood
Care and Development (ECCD) and the Council/NECCDCC shall be under the Office of the President;

WHEREAS, under RA 8980, the CWC Secretariat, which also serves as the Secretariat of the
NECCDCC, shall be headed by an Executive Director, and assisted by two (2) Deputy Executive
Directors, one of whom shall be exclusively concerned with ECCD Concerns and the other exclusively
concerned with the existing functions of the CWC;

WHEREAS, by virtue of Executive Order No. 349, (2004) clear lines of authority over CWC
and NECCDCC Secretariat were established and the Secretaries of Department of Social Welfare and
Development and Department of Education were directed to exercise primary oversight functions
over the Deputy Executive Director for CWC Concerns and the Deputy Executive Director for ECCD
Concerns, respectively;

WHEREAS, there is a necessity to designate a focal agency that will oversee the operations of
the CWC Secretariat and harmonize the effective and efficient operationalization of its mandates,
specifically in monitoring the implementation and enforcement of all laws for children (per PD 603, as
amended) and in promulgating policies and guidelines for ECCD programs (per RA 8980);

WHEREAS, by virtue of EO 221 (2003), the DSWD is mandated to provide assistance to local
government units, non-government organizations, other national government agencies, people’s
organizations, and other members of civil society in effectively implementing programs, projects and
services that will alleviate poverty and empower disadvantaged individuals, families and communities,
to include the children’s sector, for an improved quality of life;

WHEREAS, Executive Order No. 292 (1987), otherwise known as the “Administrative Code
of 1987”, grants the President continuing authority to reorganize the administrative structure of the
Executive Branch;

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NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. The Council for the Welfare of Children is hereby placed as an attached agency of
the Department of Social Welfare and Development.

SECTION 2. The Council for the Welfare of Children shall have the following functions:

(a) Coordinate the implementation of all laws relative to the promotion of child and youth
welfare and protection of their rights;

(b) Formulate an integrated national policy and long-range programs, monitor the enforcement
of the laws on children, and ensure that all implementing member agencies carry out its
provisions;

(c) Advocate and recommend to the President and other appropriate agencies for implementation
on a nationwide scale when appropriate, new, innovative, pilot programs and services for the
general welfare of children and youth;

(d) Mobilize resource assistance and call upon and utilize any department, bureau, office, agency,
or instrumentalities, public, private, or voluntary, for such assistance as it may require in the
performance of its functions;

(e) Submit annually to the President, through the Secretary of Social Welfare and Development, a
comprehensive report on its activities and accomplishments; and

(f) Perform such other functions as provided by law.

SECTION 3. The Council shall ensure the effective implementation of Presidential Decree 603
as amended and Republic Act 8980 and shall coordinate among government agencies such as, but not
limited to the following agencies: National Economic and Development Authority (NEDA), National
Youth Commission (NYC) and the National Nutrition Council (NNC).

SECTION 4. The CWC shall also function as the National Early Childhood Care and
Development Coordinating Council (NECCDCC), whereby in addition to the composition of the
CWC, two (2) ECCD experts shall be appointed by the Chairperson.

SECTION 5. The Council Secretariat, shall be headed by an Executive Director with a rank of
Career Executive Service Officer I (CESO I), and will serve as the Secretariat of both the Council and
the NECCDCC.

SECTION 6. All orders, issuances, rules and regulations or parts thereof inconsistent with this
Executive Order are hereby repealed or modified accordingly.

SECTION 7. This Executive Order shall take effect fifteen (15) days from its publication in a
national newspaper of general circulation.

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DONE in the City of Manila, this 28th day of June, in the year of Our Lord Two Thousand and
Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 631

AMENDING EXECUTIVE ORDER NO. 339, WHICH MANDATED THE RATIONALIZATION
OF THE OPERATIONS AND ORGANIZATION OF THE SUGAR REGULATORY
ADMINISTRATION (SRA), BY DECLARING THAT THE SRA IS A GOVERNMENT-
OWNED AND CONTROLLED CORPORATION

WHEREAS, Republic Act (RA) No. 632 dated June 6, 1951 created the Sugar Regulatory
Administration (SRA) as a government agency that needs to pursue institutional reforms to address
inconsistencies and redundancies in its present setup considering the current situation of the sugar
industry and the sustainability of its operations;

WHEREAS, Executive Order (EO) No. 339 dated July 29, 2004 mandated the rationalization
of the operations and organization of the SRA and treated SRA as neither a government-owned and
controlled corporation nor a subsidiary, but an administrative agency pursuant to the ruling of the
Supreme Court in the case of Republic of the Philippines vs. Court of Appeals dated August 5, 1991;

WHEREAS, EO No. 339 (2004), in Section 2, Paragraph 1, provides a guideline that in the
implementation of its rationalization, the SRA shall operate and adopt the organizational structure of
a regular agency of the national Government, consistent with existing jurisprudence that the SRA is
neither a government-owned or controlled corporation (GOCC) nor a subsidiary but an administrative
body;

WHEREAS, Section 2 of EO No. 292, otherwise known as the Administrative Code of 1987,
defines a GOCC as “any agency organized as stock or nonstock corporation, vested with functions
relating to public needs whether government or proprietary in nature, and owned by the Government
directly or through its instrumentalities either wholly, or, where application as in the case of stock
corporations, to the extent of at least fifty-one (51) percent of its capital stock: Provided, That
government owned or controlled corporations may be further categorized by the Department of
Budget, the Civil Service Commission and the Commission on Audit for purposes of the exercise and
discharge of their respective powers, functions and responsibilities with respect to such corporations.”

WHEREAS, the SRA falls within the definition of a GOCC under the Administrative Code
of 1987 since (1) its powers and functions as provided in EO No. 18 (1986) relate to public needs,
(2) it is endowed with corporate personality and vested with corporate powers, and (3) its predecessors,
namely, the Philippine Sugar Institute and the Philippine Sugar Commission, created under RA No.
632, and Presidential Decree No. 388, respectively, were likewise endowed with corporate personality
and vested with corporate powers;

WHEREAS, the Department of Justice (DOJ), in its Opinion No. 80 (2006), stated that the
Charter of the SRA (EO No. 18, 1986) is a special law and recognized the existing jurisprudence
holding that the SRA is a GOCC;

WHEREAS, the SRA is a GOCC when the “Charter Test” is applied: (1) it is created by a special
law (E.O. No. 18); (2) it acquires juridical personality based exclusively on said law; and (3) it is
endowed by its charter with a corporate form of governance;

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WHEREAS, the Implementing Rules and Regulations of the Office of the Government Corporate
Counsel (February 28, 2006), in its Declaration of Policy, specifically paragraph 2 of Rule 2, defines
GOCC as “a corporation organized as a stock or nonstock corporation vested with functions
relating to public needs, whether governmental or proprietary in nature, and owned by the National
Government directly or through its instrumentalities either wholly or, where applicable as in the case
of stock corporations, to the extent of at least fifty-one percent (51 %) of its capital stock. This term
shall also include subsidiaries, offsprings, acquired asset corporations, and other government entities of
which the OGCC is the principal law office-,”

WHEREAS, consistent with the powers, features and the provisions of the charter of the SRA, the
rationalization effort for the SRA must be consistent with its character as a GOCC;

WHEREAS, it is necessary and desirable to amend EO No. 339 to reflect SRA’s true nature and
status as a GOCC in its rationalization.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

Section 1. Section 2 paragraph 1 of E.O No. 339 dated July 2004, is hereby amended to read as
follows:

“ 1 . The SRA shall operate and adopt the organizational structure of a government-owned and
controlled corporation consistent with the prevailing jurisprudence; and”

Section 2. Repealing Clause. All other executive orders, proclamations, issuances, rules and
regulations or parts therefor which are inconsistent with the provisions of this Executive Order, are
hereby repealed, amended or modified accordingly.

Section 3. Effectivity. This Executive Order shall take effect fifteen (15) days after its publication
in a national newspaper of general circulation.

DONE in the City of Manila, this 9th day of July, in the year of Our Lord, Two Thousand and
Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By authority of the President:
(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601
Malacanang Records Office.

700]. Manila:

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MALACANAN PALACE
MANILA

EXECUTIVE ORDER NO. 632

AMENDING EXECUTIVE ORDER NO. 273 (SERIES OF 2000) AND MANDATING A
PRESIDENTIAL ASSISTANT TO ASSESS, PLAN AND MONITOR
THE ENTIRE EDUCATIONAL SYSTEM

WHEREAS, the Presidential Commission on Educational Reform, or PCER, was created in 1998
to continue and build on the work of the 1991 Congressional Commission on Education to further
strengthen the role of education in accelerating national development and global competitiveness;

WHEREAS, Executive Order No. (EO) 273 (Series of 2000) created a National Coordinating
Council for Education (NCCE) with the following specific mandates:

• To serve as the regular forum for trans-subsectoral consultations on cross-cutting policies and
programs;

• To harmonize goals and objectives for the entire education system and to dovetail them to
national development plans;

• To review existing and proposed programs and projects for tighter inter-subsector coordination;

• To set priorities for the education system and recommend corresponding financial requirements;

• To pursue and monitor implementation of the reforms proposed by the PCER;

• To establish, oversee and monitor the implementation of the National Educational Evaluation
and Testing System and its operations;

• To designate and provide guidelines for Philippine representatives in international and national
conferences/meetings with cross-cutting themes or concerns in education; and

• To convene a biennial National Congress on Education for the purpose of assessing, updating/
upgrading and strengthening of the educational system and its components;

WHEREAS, in EO 273, the chair rotates every two years among the heads of the Department of
Education (Dep Ed), the Commission on Higher Education (CHED) and the Technical Education and
Skills Development Authority (TESDA);

WHEREAS, CHED and DepEd vehemently opposed the TESDA Chairmanship;

WHEREAS, EO 273 was shelved;

WHEREAS, the need to synchronize and harmonize the government’s educational policies,
programs and initiatives becomes all the more urgent given our country’s ranking in world
competitiveness;

NOW, THEREFORE I, GLORIA M. ARROYO, President of the Republic of the Philippines, do
hereby amend EO 273 (Series of 2000) by abolishing the NCCE and mandating a Presidential Assistant
to exercise its functions.

All executive issuances inconsistent with this Executive Order are hereby repealed or amended
accordingly.

This Executive Order shall take effect immediately.

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DONE in the City of Manila, this 10* day of July, in the year of Our Lord, two thousand and
seven.

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

(Sgd.) GLORIA MACAPAGAL-ARROYO

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

EXECUTIVE ORDER NO. 633

PROVIDING FOR THE IMMEDIATE RELEASE OF DETAINED CHILDREN IN CONFLICT
WITH THE LAW (CICL) AS DECLARED UNDER R.A. 9344, ENTITLED
“JUVENILE JUSTICE AND WELFARE ACT OF 2006”

WHEREAS, the State recognizes the vital role of children and youth in nation building and shall
promote and protect their physical, moral, spiritual, intellectual and social well-being;

WHEREAS, the Philippines, pursuant to its treaty obligation under the Convention on the Rights
of the Child, enacted Republic Act No. 9344 Establishing a Comprehensive Juvenile Justice and
Welfare System which requires the application of restorative justice to children in all its laws, policies
and programs;

WHEREAS, the inventory of the Juvenile Justice and Welfare Council shows that there are still
children in detention despite the passage of the law in 2006;

WHEREAS, pursuant to Book III, Title 1, Section 1 of the Administrative Code, the President
shall have control of the executive departments, bureaus and offices and shall ensure that the laws be
faithfully executed;

NOW, THEREFORE, I, GLORIA MACAPAGAL - ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law and pursuant to the provisions of R.A. 9344
do hereby order:

SECTION 1. Coverage. Children who are fifteen years of age and below at the time of the
commission of the crime, who are still detained in prison facilities of the Bureau of Jail Management
and Penology and the Bureau of Corrections.

SECTION 2. Petition for Release of the Child. For children who are detained by reason of final
judgment rendered by a court of competent jurisdiction, the Department of Justice, through the Public
Attorney’s Office is hereby directed to file immediately the necessary Petition to the court for the release
of the child.

For children in detention pending trial, the Department of Justice, through the Public Attorney’s
Office shall likewise immediately file the necessary Petition before the court to secure the release of the
child.

If the child is assisted by counsel de parte, the Department of Justice, through the Public Attorney’s
Office shall coordinate with the child’s counsel to ensure the release of the child.

SECTION 3. Release of the Child. Upon the issuance of the Court Order granting the release of
the child, the head/warden of the detention facility shall release the child within forty eight (48) hours
to the latter’s parents in the presence of the Local Social Welfare Development Officer (LSWDO). The
LSWDO shall prepare and implement the necessary after-care services for the child.

SECTION 4. Monitoring. The Department of Justice, through the Public Attorney’s Office shall
prepare a quarterly report of its compliance to this Order to the Office of the Executive Secretary with
copy of the report furnished to the Juvenile Justice and Welfare Council.

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SECTION 5. Repealing Clause. All other executive issuances, rules and regulations or parts
thereof which are inconsistent with the provisions of this Executive Order are hereby repealed,
amended or modified accordingly.

SECTION 6. Separability Clause. Any provision hereof that may be declared in violation of
existing laws shall in no way nullify the other provisions of this Executive Order.

SECTION 7. Effectivity. This Executive Order shall take effect after fifteen (15) days from
publication in a newspaper of general circulation.

DONE in the City of Manila, this 16th day of July, in the year of Our Lord, Two Thousand and
Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 634

CREATING THE BICOL CALAMITY ASSISTANCE AND REHABILITATION EFFORT COMMITTEE

WHEREAS, funding for the River Basin and Watershed Management Project, a project funded by
the National Government with a World Bank loan, is now available;

WHEREAS, the project has two major components, namely: 1) Bicol River Basin Management
Component; and 2) Water Resources Management Component;

WHEREAS, the Bicol River Basin Management Component which will pilot the integrated water
resources management approach on the ground is further subdivided into four subcomponents. These
are: 1) Institutional Strengthening, 2) Watershed Development and Management to be led by the
Department of Environment and Natural Resources and co-implemented by the Local Government
Units (LGUs) within the Bicol River basin; 3) Irrigation Management to be implemented by the
National Irrigation Administration; and 4) Flood Mitigation to be implemented by the Department of
Public Works and Highways;

WHEREAS, the total project cost is estimated at $30 Million, around $22 Million of which is
expected to be borrowed from the World Bank;

WHEREAS, the Bicol Region has been adversely affected by a series of massive typhoons
particularly Caloy, Milenyo, Reming and Seniang;

WHEREAS, Republic Act No. 9401 or the General Appropriations Act (GAA) for 2007 sets
the parameters as to the allocation for the Calamity Assistance and Rehabilitation Effort (CARE)
of Eight Billion Pesos (P8, 000,000, 000. 00) under the Calamity Fund and Two Billion Pesos
(P2,000, 000,000. 00) under the Department of Education (DepEd), the implementing/recipient
departments and agencies and use of the fund;

WHEREAS, to date, the Department of Budget and Management has released some P5.2 Billion
under the Calamity Fund and the P2.0 Billion under the DepEd for school buildings in typhoon
stricken areas or a total of P7.2 Billion to various implementing departments and agencies specified in
the GAA, as follows:

Department of Agriculture (DA)

Department of Agrarian Reform (DAR)

Department of Energy/National Electrification
Administration (DOE/NEA)

Department of Social Welfare and Development (DSWD)
Department of Education (DepEd)

National Housing Authority (NHA)

Department of Health (DOH)

Department of Public Works and Highways (DPWH)
State Universities and Colleges (SUCs)

Local Government Units (LGUs)

P0.126 Billion

P0.400 Billion

P1.425 Billion

P0.300 Billion

P2.0 Billion

P0.500 Billion

P1.0 Billion

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WHEREAS, prior to the release of funds, work program of the individual implementing agencies
were submitted to the National Disaster Coordinating Council (NDCC), an inter-agency body with the
Office of Civil Defense as the technical Secretariat. The said Council serves as the clearing house for
all claims/request and upon consolidation/evaluation, the requests are endorsed and recommended to
the Office of the President (OP) for approval. The Department of Budget and Management (DBM) is
notified of the OP approval as basis for the release of the fund.

WHEREAS, the NDCC normally handles calamity funds of about Two Billion Pesos
(P2,000,000,000) to coordinate calamity response all over the country;

WHEREAS, the Ten Billion (P10,000, 000,000. 00) allocated for CARE is many times bigger than
what the NDCC normally handles;

WHEREAS, a wholistic approach is needed in the implementation of government rehabilitation,
repair and reconstruction works and activities in order to immediately mitigate the devastation caused
by the aforementioned typhoons;

WHEREAS, some components of the Bicol River Basin and Watershed Management may
interface or overlap with CARE;

WHEREAS, there is a need to establish relationships to synchronize the operations of existing
government structures in order to strengthen synergy and efficiency;

NOW, THEREEORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, do hereby order:

Section 1. Creation. - The Bicol CARE Commission (B CARE C) is hereby created.

Section 2. Mandate. - The B CARE C shall integrate relief, rehabilitation, resettlement, recovery,
livelihood and development efforts in the different areas of the Bicol Region particularly affected by
typhoons Caloy, Milenyo, and Reming. It shall likewise ensure that public funds allocated for victims
of said disasters shall be spent judiciously and effectively through efficient prioritization of programs
and consistent monitoring of projects. It shall replace NDCC as the clearing house for all claims/
requests. Upon consolidation/evaluation, it shall approve the appropriate requests. It shall notify the
DBM of its approval as a basis for the release of the fund.

Section 3. Powers. - The B CARE C shall have the following powers:

a. To generate proposals from the implementing agencies for relief, rehabilitation, resettlement,
recovery, livelihood and development efforts as well as infrastructure support;

b. To work with the Department of Environment and Natural Resources (DENR) on hazard
mapping for the Bicol Region;

c. To work with the Bicol River Basin and Watershed Management Project Management Office
on common or overlapping project activities;

d. To regularly monitor the status of programs, projects and activities in the areas devastated by
typhoons Caloy, Milenyo, Reming and Senyang in the Bicol Region to ensure their prompt and
efficient execution;

e. To recommend courses of action to ensure cohesiveness in objectives and coordinated action to
improve the implementation of rehabilitation, repair and reconstruction works and activities in
the said areas;

f. To coordinate and consult with concerned national and local officials, both elective and
appointive, as well as accredited non-government organizations in the prosecution of programs
and projects;

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g. To mobilize the assistance and support of any government agency or instrumentality as well as
civil society and donor community to address identified gaps and requirements in rehabilitation
efforts; and

h. To formulate policies, plans and programs for relief, rehabilitation, resettlement, recovery,
livelihood and development efforts as well as infrastructure support with regard to CARE
funds unallocated to date or funds for a similar purpose that may be allocated in the future.

Section 4. Composition. - The B CARE C shall be composed of the following:

a. The Chairman of the NDCC, as Chairman of the B CARE C

b. The Secretary of Agriculture

c. The Secretary of Agrarian Reform

d. The Secretary of Social Welfare and Development

e. The Secretary of Budget and Management

f. The Secretary of Education

g. The Secretary of Health

h. The Secretary of Public Works and Highways

i. The Chairman of the Commission on Higher Education

j. The Administrator of NEA

k. The General Manager of NHA

l. The Chairman of the Region V Development Council

Section 5. Organization of the Secretariat. - The B CARE C shall maintain a Secretariat to be
headed by the Executive Director. It may request that personnel from different government agencies
and instrumentalities be detailed by their respective heads.

Section 6. Assistance of Government Entities. - All departments, agencies, bureaus, offices
and instrumentalities are hereby enjoined to extend full assistance and cooperation, and to provide
necessary information and data to B CARE C.

Section 7. Secretariat. - The B CARE C shall be supported by the secretariat to be headed by an
Executive Director. Technical and administrative personnel shall be provided by member agencies on
detail basis. The Executive Director shall have the following powers and functions:

a. Administer and manage the day-to-day affairs and operations of the B CARE C;

b. Coordinate the activities of agencies and instrumentalities in the implementation of projects;

c. Coordinate and liaise with accredited non-government organizations, international relief
agencies and other groups or individuals involved in relief, resettlement, rehabilitation and
livelihood services;

d. Conduct studies on disaster mitigation and other related alternative measures to minimize the
adverse effects to lives, properties and livelihood of residents in the Bicol Region that may be
caused by similar disasters;

e. Work with the DENR on Hazard mapping for the Bicol Region;

f. Monitor the implementation of projects and programs in connection with the relief,
rehabilitation, resettlement, recovery, livelihood and development efforts;

g. Report to the B CARE C, which shall meet at least monthly, on the status, situation and
developments concerning projects and programs; and

h. Perform such other functions as may be assigned by the President.

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Section 8. Reportorial Requirements. - The B CARE C shall submit to the appropriate
Congressional oversight committee a quarterly report on the funds allocated indicating the amount
released, obligated and disbursed for:

a. Aid, relief, resettlement, rehabilitation and livelihood services; and

b. Construction or repair and reconstruction of infrastructure projects being financed, and the
accomplishments for the expended appropriations.

Section 9. Term. - The B CARE C shall exercise its powers and functions for a period of two (2)
years unless otherwise directed by the President.

Section 10. Funding. - The funding for the administrative and operational expenses of the B
CARE C shall be sourced from the Calamity Eund.

Section 11. Repealing Clause. - All other executive issuances, rules and regulations or parts
thereof that are inconsistent with the provisions of this Executive Order are hereby repealed, amended
or modified accordingly.

Section 12. Effectivity. - This Executive Order shall take effect immediately.

Done in the City of Manila, this 3'“* day of July, in the year of Our Lord, Two Thousand and
Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

EXECUTIVE ORDER NO. 635

AMENDING EXECUTIVE ORDER NO. 592 DATED DECEMBER 15, 2006 ENTITLED
“IMPOSING THE MANDATORY PAYMENT OF CONTAINER SECURITY FEE IN THE
IMPLEMENTATION OF THE NON-INTRUSPVE CONTAINER INSPECTION SYSTEM (NCIS)
PROJECT OF THE BUREAU OF CUSTOMS AND CREATING A TRUST FUND FOR THE USE
THEREOF” BY REDUCING CONTAINER SECURITY FEE RATES

WHEREAS, smuggling and other acts contrary to customs laws by under declaration or
misdeclaration of imported goods or shipment of illegal items, drugs or hazardous substances continue
to pose a direct and serious threat to the national economy and national security;

WHEREAS, there is a continued need to use container x-ray machines in various ports in the
Philippines to expeditiously determine whether the declarations in the bills of lading of importers and
exporters are true and correct and that no illegal items, drugs or harmful substances are within the said
containers;

WHEREAS, there is a need to reduce the container security fees, as previously mandated in
Executive Order No. 592, dated December 15, 2006, to lessen the financial burden on importers and
exporters of goods;

WHEREAS, Executive Order No. 592, dated December 15, 2006 mandates that the collection
of a container security fee amounting to FIFTY US DOLLARS (US$50) for a 40-footer container and
TWENTY-FIVE US DOLLARS (US$25) for a 20-footer container;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Amending Section 2 of Executive Order NO. 592. Section 2 of Executive Order No.
592, dated December 15, 2006, shall now read as follows:

“Section 2. Container Security Fee. All shipments covered by this Executive Order shall be
imposed the mandatory container security fee (CSF) in Philippine currency equivalent to US$10 for
every 40-footer container and US$5 for every 20-footer container or twenty equivalent units (TEUs).”

SECTION 2. Amending Section 3 of Executive Order NO. 592. Section 3 of Executive Order No.
592, dated December 15, 2006, shall now read as follows:

“Section 3. Utilization of Container Security Fee. The Container Security Fee shall be expended
and utilized by the Bureau of Customs as an administrative support system for the sustainability of the
NCIS Project including but not limited to:

a. Maintenance and improvement of the operation of the NCIS, including the upgrading thereof;

b. Institutionalization of post audit procedures and processes;

c. Fraud and fraud-related investigations and prosecutions;

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d. Training and related programs to enhance the capability and competence of personnel tasked
to operate and maintain the system;

e. Other activities and programs to enhance the effectiveness and efficiency of the system as the
Bureau of Customs may deem to be appropriate.”

SECTION 3. Repealing Clause. All executive issuances, rules, regulations or parts thereof which
are inconsistent with this Executive Order are hereby revoked, amended and modified accordingly.
SECTION 4. Effectivity. This Executive Order shall take effect immediately.

Done in the City of Manila, this 16th day of July, 2007.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601
Malacanang Records Office.

700]. Manila:

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MALACANANG

MANILA

EXECUTIVE ORDER NO. 636

TRANSFERRING THE PHILIPPINE MINING DEVELOPMENT CORPORATION FROM THE
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES TO
THE OFFICE OF THE PRESIDENT

WHEREAS, the Philippine Mining Development Corporation (formerly the Natural Resources
Mining Development Corporation) is a government-owned and controlled corporation primarily
tasked to conduct and carry on the business of exploring, developing, mining, smelting and producing,
transporting, storing, distributing, exchanging, selling, disposing, importing, exporting, trading and
promotion of gold, silver, copper, iron and all kinds of mineral deposits and substances;

WHEREAS, in order to closely monitor and oversee the efficient and effective implementation
of the country’s utilization and development of its mineral resources, there is a need to transfer the
Philippine Mining Development Corporation from the Department of the Environment and Natural
Resources to the Office of the President;

WHEREAS, under Section 31, Chapter 10, Title III, Book III of the Administrative Code of 1987,
the President has the continuing authority to reorganize the administrative structure of the Office of
the President;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Transfer. — The Philippine Mining Development Corporation is hereby transferred
from the Department of Environment and Natural Resources to the Office of the President.

SECTION 2. Repealing Clause. — All executive issuances, rules and regulations or parts
thereof which are inconsistent with this Executive Order are hereby revoked, amended, or modified
accordingly.

SECTION 3. Effectivity. — This Executive Order shall take effect immediately.

City of Manila, 18th July 2007.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 637

PROVIDING THE BASIS FOR THE COMPUTATION OF THE INCENTIVE BENEFITS
OF PERSONNEL WHO MAY BE AFFECTED BY THE IMPLEMENTATION OF THE
RATIONALIZATION PROGRAM UNDER EXECUTIVE ORDER (EO) NO. 366, S. 2004

WHEREAS, EO 366 dated 04 October 2004 directs all Department Secretaries/Agency Heads
to take the lead in pursuing the conduct of a strategic review of the operations and organizations of
all their component units, including those of the agencies and government-owned and/or controlled
corporations (GOCCs)/government financial institutions (GFIs) attached to or under their respective
administrative supervision, to focus government efforts on its vital/core functions and channel
government resources to these core public services, thus improve the efficiency and effectiveness of
government services, within affordable levels, and in the most accountable manner;

WHEREAS, in the implementation of the Rationalization Program under EO 366, personnel
assigned to functions, programs, projects and units that would be affected would be given the option
to either: (1) remain in government service and be placed in other government agencies needing
additional personnel; or (2) avail of retirement/ separation benefits, plus the applicable incentive;

WHEREAS, EO 611 (Authorizing Compensation Adjustments to Government Personnel) dated
14 March 2007 provides for a 10% increase effective 01 July 2007 over the basic monthly salary as of
30 June 2007 of all civilian national government personnel whose positions are covered by the Position
Classification and Compensation System under RA 6758, as amended;

WHEREAS, equity and fairness must be ensured in granting incentives to all affected personnel
who opted/are opting to avail of retirement/separation benefits;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

Section 1. Guidelines in the Computation of Incentives. The incentive benefits that would
be received by personnel who would opt to avail of the retirement benefit under RA 660 or the
applicable retirement, separation or unemployment benefit provided under RA 8291 as a result of the
rationalization efforts of the different Departments/Agencies/GOCCs/GFIs of the Executive Branch,
and whose retirement/separation from government service would be effective starting 01 July 2007 or
a later date, shall be computed using the actual monthly salary of said personnel as of 30 June 2007.

The affected personnel’s terminal leave benefits and retirement/separation benefits which would
be provided by the National Government and the Government Service Insurance System (GSIS),
respectively, shall be computed using the existing Department of Budget and Management and GSIS
rules and regulations on the matter at the time of their retirement/separation.

The Department Secretaries/ Agency Heads shall be accountable for the correct computation of
the incentive benefits of affected personnel in their respective offices.

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Section 2. Repealing Clause. All executive orders, rules, regulations and other issuances, or parts
thereof, which are inconsistent with the provisions of this Executive Order, are hereby revoked or
modified accordingly.

Section 3. Effectivity. This Executive Order shall take effect upon its publication in a national
newspaper of general circulation.

DONE in the City of Manila, this 24th day of July, in the year of Our Lord Two Thousand and
Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 638

MODIFYING THE RATES OF DUTY ON CERTAIN IMPORTED ARTICLES AS PROVIDED
UNDER THE TARIFF AND CUSTOMS CODE OF 1978, AS AMENDED, IN ORDER TO
IMPLEMENT THE COMMITMENT TO GRANT RECIPROCAL TARIFF RATE TREATMENT
ON TARIFF LINES INCLUDED IN THE SENSITIVE TRACK OF THE
ASEAN-KOREA FREE TRADE AREA

WHEREAS, the Framework Agreement on Comprehensive Economic Cooperation (Framework
Agreement) between the Association of South East Asian Nations (ASEAN) and Korea was signed by
the Heads of Government/State of the ASEAN Member States and Korea on 13 December 2005 in
Kuala Lumpur, Malaysia;

WHEREAS, Articles 1.3 and 2.1 of the Framework Agreement reflect the Parties’ commitment to
establish the ASEAN - Korea Free Trade Area (AKFTA) covering trade in goods by 2010 for ASEAN 6
and Korea, and by 2016 or 2018 for the newer ASEAN Member States;

WHEREAS, the Agreement on Trade in Goods of the Framework Agreement was signed by the
Economic Ministers of the Parties on 24 August 2006 in Kuala Lumpur, Malaysia;

WHEREAS, the aforesaid Annex 2 of the Agreement on Trade in Goods of the Framework
Agreement provides that the reciprocal tariff rate treatment of tariff lines placed by an exporting Party
in the Sensitive Track, excluding Group E, while the same tariff lines are placed by the importing party
in the Normal Track, shall be governed by the following conditions: (a) the tariff rate for a tariff line
placed by an exporting Party in the Sensitive Track, excluding Group E, must be at 10% or below
and the exporting Party has given notification to that effect to the other Parties in order for that
exporting Party to enjoy reciprocity; (b) the reciprocal tariff rate to be applied to a tariff line placed by
an exporting Party in the Sensitive Track shall be either the tariff rate of exporting Party’s tariff line,
or the Normal Track tariff rate of the same tariff line of an importing Party from whom reciprocity
is sought, whichever is higher; (c) notwithstanding subparagraph (b), the importing party can, on its
own discretion, apply its Normal Track tariff rate even if such rate is lower than the tariff rate of the
exporting party; and (d) the reciprocal tariff rate to be applied to a tariff line placed by an exporting
Party in the Sensitive Track shall in no case exceed the applied MEN rate of the same tariff line of an
importing Party from whom reciprocity is sought.

WHEREAS, Section 402 of the Tariff and Customs Code of 1978 (PD 1464), as amended,
empowers the President of the Republic of the Philippines, upon the recommendation of the National
Economic and Development Authority, to modify import duties for the promotion of foreign trade;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

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SECTION 1. The products of the other Parties under their Sensitive Track in Annex “A” hereof,
will be accorded reciprocal tariff treatment as governed by Paragraph 7 of Annex 2 of the Agreement
on Trade in Goods after a notification has been received from the Party/Parties that the rates of duty of
products in its Sensitive Track are at 10% and below. For confirmation of the products covered by this
reciprocity rule, the Tariff Commission, upon request shall issue tariff classification rulings pursuant to
Section 1313(a) of the Tariff and Customs Code, as amended.

SECTION 2. From the date of effectivity of this Order, all articles listed in Annex “A” entered into
or withdrawn from warehouses in the Philippines for consumption shall be imposed the rates of duty
therein prescribed subject to compliance with the Rules of Origin as provided for in Article 5 of the
Agreement on Trade in Goods of the Framework Agreement.

SECTION 3. All presidential issuances, administrative rules and regulations, or parts thereof,
which are contrary to or inconsistent with this Executive Order are hereby revoked or modified
accordingly.

SECTION 4. This Executive Order shall take effect immediately following its complete
publication in the Official Gazette or in a newspaper of general circulation in the Philippines.

Done in the City of Manila, this 21st day of July, in the year of Our Lord, Two Thousand and
Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 639

WHEREAS, the Framework Agreement on Comprehensive Economic Cooperation (Framework
Agreement) between the Association of South East Asian Nations (ASEAN) and the Republic of Korea
(Korea) was signed by the Heads of Government of the ASEAN Member countries and Korea on
13 December 2005 in Kuala Lumpur, Malaysia;

WHEREAS, Articles 1.3 and 2.1 of the Framework Agreement reflect the Parties’ commitment to
establish the ASEAN - Korea Free Trade Area ( AKFTA) covering trade in goods;

WHEREAS, the Agreement on Trade in Goods of the Framework Agreement was signed by the
Economic Ministers of the Parties on 24 August 2006 in Kuala Lumpur, Malaysia;

WHEREAS, Article 3(2)(a) of the Agreement on Trade in Goods of the Framework Agreement
provides that tariff lines placed in the Normal Track by each Party shall have their respective applied
MEN tariff rates gradually reduced or eliminated in accordance with the modalities set out in Annex 1
of the Agreement with the objective of achieving the targets prescribed in the threshold therein;

WHEREAS, the aforesaid Annex 1 of the Agreement on Trade in Goods of the Framework
Agreement provides that ASEAN 6 and Korea shall implement the following tariff reduction schedule
for products in the Normal Track not later than 1 January 2006; (a) applied MEN tariff rates above
20% shall be reduced to 20%; (b) applied MEN tariff rates from 15% to 19% shall be at 15%; (c)
applied MEN tariff rates from 10% to 14% shall be at 10%; (d) applied MEN tariff rates from 6% to
9% shall be reduced to 5%; and (e) applied MEN tariff rates from 0% to 5% shall be maintained;

WHEREAS, the NEDA Board approved during its meeting on 17 July 2007 the reduction in
tariff rates on products included in the Normal Track in compliance with the modalities set out in the
Agreement on Trade in Goods of the Framework Agreement;

WHEREAS, Section 402 of the Tariff and Customs Code of 1978 (PD 1464), as amended,
empowers the President of the Republic of the Philippines, upon the recommendation of the National
Economic and Development Authority, to modify import duties for the promotion of foreign trade;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. The articles specifically listed in Annex “A” (Articles Granted Tariff Concession
Under the Normal Track of the ASEAN - Korea Free Trade Area) hereof, as classified under Section
104 of the Tariff and Customs Code of 1978, as amended, shall be subject to the AKFTA rates in
accordance with the schedule indicated in Columns 4-6 of Annex “A”. The AKFTA rates so indicated
shall be accorded to imports coming from the parties of the Agreement on Trade in Goods of the

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Framework Agreement applying tariff concession to the same product pursuant to Article 3 of the
Agreeement on Trade in Goods of the Framework Agreement.

SECTION 2. For ASEAN 8 (i.e. Brunei Darussalam, Cambodia, Indonesia, Lao Peoples
Democratic Republic, Malaysia, Myanmar, Singapore and Vietnam) the applicable rate shall be the
AKFTA or the Common Effective Preferential Tariff (CEPT) rate whichever is lower, subject to the
submission of the proper Certificate of Origin, Form AK or D. The Tariff Commission pursuant to
Section 1313(a) of the Tariff and Customs Code of the Philippines, as amended, may, upon request,
issue tariff classification rulings to confirm the applicable rates of duty of particular products subject to
this section.

SECTION 3. In the event that any subsequent change is made in the basic (MFN) Philippine rate
of duty on any of the article listed in Annex “A”, to a rate lower than the rate prescribed in Columns
4-6 of Annex “A”, such article shall automatically be accorded the corresponding reduced duty.

SECTION 4. From the date of effectivity of this Order, all articles listed in Annex “A” entered into
or withdrawn from warehouses in the Philippines for consumption shall be imposed the rates of duty
therein prescribed subject to compliance with the Rules of Origin as provided for in Article 5 of the
Agreement on Trade in Goods of the Framework Agreement.

SECTION 5. All presidential issuances, administrative rules and regulations, or parts thereof,
which are contrary to or inconsistent with this Executive Order are hereby revoked or modified
accordingly.

SECTION 6. This Executive Order shall take effect immediately following its complete
publication in the Official Gazette or in a newspaper of general circulation in the Philippines.

Done in the City of Manila, this 21st day of July, in the year of Our Lord Two Thousand and
Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 640

EXTENDING FURTHER THE DURATION OF OPERATION OF THE PRESIDENTIAL
MIDDLE EAST PREPAREDNESS COMMITTEE (PMEPC) TO DECEMBER 31, 2007

WHEREAS, the term of the Presidential Middle East Preparedness Committee (PMEPC) expires
on June 30, 2007 pursuant to E.O. 597 dated January 12, 2007;

WHEREAS, tensions, political instability, and armed conflicts continue to exist in some countries
of the Middle East that directly threaten the safety and security of thousands of Filipino workers in
these countries;

WHEREAS, there is an urgent need for the PMEPC to continue to assess and monitor
developments and update contingency measures to ensure the safety of Filipinos in the Middle East,
prepare and establish a specific contingency plan each for the potential crises in some countries, and to
uphold the current ban on the deployment of Filipino workers to Iraq and Lebanon;

WHEREAS, the PMEPC is also tasked to provide continuing assistance to the Department of
Foreign Affairs, as well as to other government agencies concerned with OFW safety, security, and
protection, and in the formulation and implementation of policies, plans, and modes of coordination in
areas where there are a significant presence of OFWs;

WHEREAS, under Section 31, Chapter 10, Title III, Book III of the Administrative Code of 1987,
the President has the continuing authority to reorganize the functions of the Office of the President.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines,
by virtue of the powers vested in me by law, do hereby order the extension of the duration of the
operations of the PMEPC to December 31, 2007 or unless otherwise directed by the President.

SECTION 1. The PMEPC shall continue to exercise its functions and responsibilities as provided
for under EO 159 dated December 23, 2002, in relation to EO 194 and EO 195, both dated April 14,
2003.

SECTION 2. Composition - The membership of the PMEPC, as enumerated under Section 3 of
EO 159, as amended by EO 549 and EO 597, respectively, is hereby retained;

SECTION 3. Funding - The Committee shall be provided with an additional funding allocation
of FIVE MILLION PESOS (P5,000,000.00) for its administrative and operational expenses to be
provided by the Office of the President. Additional financial requirements that may be needed by the
Committee shall be sourced out by the Department of Budget and Management from available funds
of the concerned PMEPC member-agencies, subject to the usual government accounting and auditing
rules and regulations.

SECTION 4. Repeal - All other rules, regulations and issuances or parts thereof which are
inconsistent with this Executive Order are hereby repealed or modified accordingly.

SECTION 5. Effectivity - This Order shall take effect immediately.

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DONE in the City of Manila, this 25th day of July, in the year of our Lord, Two Thousand and
Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 641

AUTHORIZING THE ESTABLISHMENT AND ADMINISTRATION
OF PROVIDENT FUNDS IN THE GOVERNMENT

WHEREAS, Provident Funds were established in government banking institutions pursuant to
Republic Act (RA) No. 4537, funded out of the contributions made by the bank and its officers and
employees;

WHEREAS, Section 41, General Provisions of RA No. 7180, the FY 1992 General Appropriations
Act (GAA), authorized that any surplus of service fees deposited with the National Treasury be
constituted into a Provident Fund which shall be available for loaning purposes; and Administrative
Order No. 279, s. 1992 prescribed the attendant rules and regulations;

WHEREAS, subsequent GAAs reiterated the constitution of Provident Funds, now charged
against service fees, which shall be available also for welfare benefits’ purposes;

WHEREAS, other government-owned and/or controlled corporations (GOCCs) and government
financial institutions (GFIs) were authorized to establish Provident Funds;

WHEREAS, Provident Funds supplement retirement or separation benefits and provide alternative
sources of loan financing;

WHEREAS, there is a need to prescribe uniform rules and regulations for the establishment and
administration of Provident Funds in the government;

WHEREAS, the Committee on the Protection of Income of Government Employees created
pursuant to Executive Order No. 462 dated September 19, 2005, advocates the “Institutionalization of
the Agency Provident Fund” as one of the measures to provide supplementary benefits to government
employees;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Purpose - A Provident Fund is hereby authorized to be established in each
government agency to be administered in accordance with the objectives, policies, governing structure
and general guidelines indicated herein.

SECTION 2. Objectives - The Provident Fund shall serve as a savings and loan credit facility that
may cater to the needs of government officials and employees; and shall provide supplementary welfare
benefits from the Fund.

SECTION 3. Policies - The establishment and administration of the Provident Fund shall be
guided by the following policies consistent with established management principles and practices:

a. Membership in the Provident Fund shall be voluntary;

b. Employees and employers alike shall share roles in the establishment and administration of
Provident Funds;

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c. Reasonable regulatory structures shall be established to ensure uniformity, integrity and
viability of the operation of the Provident Fund;

d. Consistent with the principles of fair remuneration and equity, all officers and employees
should have guaranteed access to the Provident Fund and should have the same rights and
privileges under the Fund. There should be no special rules to benefit executives or a select
group of employees;

e. The Provident Fund should be managed prudently by a Board of Trustees with equal
representation from the employer and employees to preserve Fund accounts, safeguard the
viability of the Fund and ensure the security of members;

f. To encourage employees to contribute as much as they can to the Fund, as well as preserve
their Provident Fund accounts and not withdraw their shares before retirement or separation,
advocacy measures should be instituted;

g. Members should have strong legal protections with government enforcement capabilities
against the loss of Provident Fund assets due to fraud, theft or fiduciary mismanagement.

SECTION 4. Funding Sources - The Provident Fund shall be sourced from the following:

(a) Members’ contributions;

(b) Initial government agency counterpart contributions in the form of support for reasonable
operating requirements in the administration and operation of the Fund such as the part-time
assignment of existing personnel and the use of necessary agency facilities and equipment; and

(c) Such other fund sources as may be provided for by laws, and those which the Board of
Trustees of the Fund may thereafter identify as legal, valid and authorized funding sources.

Government cash contributions to be sourced from savings may be authorized in the future as
the government’s financial position would allow, subject to the guidelines that will be issued by the
Department of Budget and Management (DBM).

SECTION 5. Governance - The Provident Fund shall be managed by a Board of Trustees,
hereinafter referred to as the Board, with adequate representation from the employer and employees.
The agency’s highest official directly responsible for financial affairs may be designated as Chairman of
the Board of Trustees.

SECTION 6. Functions and Responsibilities of the Board - The Board shall be directly responsible
for the efficient and effective administration of the Provident Fund. Its functions shall be as follows:

a. Promulgate, implement and enforce the rules and regulations governing the use, operation,
and investment of the Fund;

b. Identify and secure other legal, valid and authorized sources of funds to provide better credit
facility and welfare benefits for the members;

c. Determine the type, use and amounts of loans that may be granted and prescribe the applicable
repayment schedule and interest rates;

d. Determine the benefits due to members of the Fund;

e. Establish the eligibility requirements for membership, claimants and grantees of the Fund;

f. Approve membership, loans to employees after considering the poverty threshold limit,
benefits, and expenditures from the Fund;

g. Designate or appoint officers and staff of standing committees for the Fund from among the
regular personnel of the agency, and prescribe their duties, and responsibilities;

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h. Create and constitute regional boards if and when the size and spread of operations so warrant
and delegate such functions as may be necessary;

i. Determine sanctions/liabilities of officers managing the Fund and of violators of the rules and
regulations of the Fund; and

j. Perform such other functions as may be necessary to carry out the objectives and purposes of
this Order.

SECTION 7. Restriction on Compensation and Expenses - All members, officers and staff of
the Board shall serve without compensation, except for payment of actual overtime services rendered
by the support staff. Reasonable expenses incurred by the members of the Board in connection with
Board activities may, however, be reimbursed upon presentation of receipts and other documentary
evidences in support of claims. Any claim for reimbursement of actual and necessary expenses incurred
in connection with activities of the Board shall be evaluated and processed in accordance with existing
accounting and auditing rules and regulations.

SECTION 8. Accounting and Auditing Requirements - The Provident Fund and its operations
shall be subject to existing accounting and auditing rules and regulations.

SECTION 9. Reporting Requirement - The Board of Trustees shall submit to the members
thereof an annual report on the operation of the Fund and its financial condition at the end of each
year, copy furnished the Office of the President and the Department of Budget and Management.

SECTION 10. Implementing Rules and Regulations - The DBM shall issue the necessary
implementing rules and regulations within sixty (60) days from the issuance of this Order, without
prejudice to the immediate establishment or setting-up of a Provident Fund by the agencies.

SECTION 11. Separability Clause - If any part or provision of this Executive Order is held invalid
or unconstitutional, the other parts or provisions not affected shall remain valid and effective.

SECTION 12. Effectivity - This Executive Order shall take effect fifteen (15) days following its
publication in a national newspaper of general circulation.

DONE in the City of Manila, this 25th day of July, in the year of Our Lord, Two Thousand Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANAN PALACE
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 642

AMENDING EXECUTIVE ORDER NO. 474, SERIES OF 1998, TO DESIGNATE THE
DEPARTMENT OF AGRICULTURE AS THE PROGRAM MANAGER OF THE MINDANAO
RURAL DEVELOPMENT PROGRAM AND FOR OTHER PURPOSES

WHEREAS, the first phase of the Mindanao Rural Development Program (MRDP-1) supported
by the Government of the Philippines through an adaptable program loan from the World Bank was
concluded 1 2004;

WHEREAS, MRDP-1 implementation in 32 municipalities of North Cotabato, Sultan Kudarat,
Agusan del Sur, Compostela Valley and Maguindanao in Mindanao through better-targeted and
sustainable agriculture and fisheries-related rural development and marine biodiversity conservation
projects triggered improvements in incomes and food security of participating households and
enhanced the institutional, technical, management and financial capabilities of the local government
units (LGUs);

WHEREAS, the learning- by-doing approach adopted in MRDP-1 provided an operational model
on how a national sectoral agency like the Department of Agriculture (DA) can facilitate the devolution
of functions and responsibilities to the LGUs;

WHEREAS, the DA, as the lead national government agency of MRDP is responsible for
coordinating the preparations for the next phases of the program;

WHEREAS, the expanded geographic coverage of the next phase of the program under MRDP-
2 and the coordination of activities streamlined into the DA’s regional field units requires clear
accountabilities;

NOW, THEREFORE, I, GLORIA M. ARROYO, President of the Republic of the Philippines, by
virtue of the powers vested in me by law, do hereby order:

Section 1. Lead Agency. The MRDP’s Program Management Board is hereby abolished and its
responsibilities transferred to the DA.

For this purpose the DA shall have the following powers and functions:

a. Provide policy directions to guide the planning and implementation of Program activities;

b. Provide overall direction in harmonizing functions of collaborating national agencies;

c. Mobilize existing resources of, and encourage the support and participation of National
Government Agencies, LGUs and National Government Institutions;

d. Approve the organizational structure and staffing requirements of the Program Support Office
(PSO) and Regional Program Coordination Office (RPCO);

e. Review and endorse the annual budget of the MRDP-2;

f. Review and take appropriate action on operational and administrative matters;

g. Reorganize the PSO and RPCO;

h. Perform such other functions and responsibilities as the President may direct.

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The Special Projects Coordination and Management Assistance Division of the DA (SPCMAD)
shall serve as the technical and administrative secretariat of the DA for the implementation of the
MRDP. The SPCMAD shall have the following functions in its implementation:

a. Provide pre-implementation assistance to the PSO in setting up the RPCOs;

b. Coordinate with the RPCOs through the PSO in the preparation of initial global and annual
work and financial plans, and facilitate the approval of such plans and their inclusion in the
annual budget of the DA;

c. Conduct operational monitoring or the Program and coordinate the dissemination of physical
and financial progress reports and other information requirements to NEDA, DBM, DOF, the
World Bank and other stakeholders;

d. Review and analyze the projects’ physical and financial progress reports, audit and technical
reports and other study/activity reports and subsequently prepare recommendations to the DA
management;

e. Coordinate with the funding agency and other offices on the various implementations of the
project; and

f. Perform such other functions as the Secretary of DA may direct.

Section 2. DA Regional Field Office (DA-RFU). The DA-RFU in the six (6) regions of Mindanao
shall serve as the regional counterpart of the DA. For the MRDP it shall have the following functions:

a. Ensure that policy directions are carried out in the planning and implementation of MRDP-2
activities within the region;

b. Ensure overall direction toward the harmonization of project roles and responsibilities of
collaborating regional offices;

c. Mobilize existing resources of, and encourage the support and participation of FGUs, People’s
Organizations and non-government organizations;

d. Review and recommend appropriate actions to resolve operational and administrative issues
that cannot be solved at the lower levels of the overall implementation structure;

e. Review the progress of implementation and of project activities and provide guidance to
improve Project performance; and

f. Endorse annual regional work and financial plan to the Undersecretary for Operations.

Section 3. Bureau of Fisheries and Aquatic Resources (BEAR). The BEAR shall assist the Program’s
implementing units in achieve the objectives and accomplishing the targets set for the Natural Resource
Management component as well as for the Coastal Marine and Biodiversity Conservation Component,
under the Global Enhancement Fund. The Director of BEAR shall assign a focal person at the central
office and its regional offices in Mindanao, who shall coordinate closely with the DA-RFUs in general,
and with the RPCOs in particular.

Section 4. PSO. The PSO is hereby created, which shall provide support to the RPCOs in the DA.
The PSO shall have the following functions:

a. Assist in setting up the RPCOs and provide technical assistance to enable them to fulfill their
functions in MRDP-2;

b. Ensure that all activities are properly coordinated with the RPCOs;

c. Promote cohesion and synergy in the planning and implementation of the project;

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d. Facilitate a quarterly conference of RPCOs to promote integration;

e. Recommend to the Undersecretary for Operations/Project Implementation Officer through the
SPCMAD policy and institutional reforms;

f. Consolidate regional reports on physical and financial progress of implementation and submit
these to the Undersecretary for Operations/PIO through the SPCMAD;

g. Undertake periodic reviews and evaluation of the Program;

h. Preparation and consolidation of Implementation Financial Report;

i. Advocate and support social and environmental safeguard compliance;

j. Review and consolidate annual and financial Plan; and

k. Ensure Indigenous Peoples’ participation in the Program.

The PSO shall be headed by a full-time Program Director to be appointed by the DA Secretary.
The PSO shall have a staff complement, the composition and structure of which shall be reviewed
and approved by the DA Secretary. It shall be superviseed by the Office of the Undersecretary for
Operations and shall coordinate with the DA-SPCMAD regarding the overall implementation of the
project activities during the project duration. It shall report to the SPCMAD.

As a phase out plan on the PSO, the DA Secretary shall ensure that necessary steps are taken
toward the gradual institutionalization of the management and supervision of MRDP to the SPCMAD,
and all the coordination functions to the DA-RPCOs with the aim of mainstreaming the program’s
various processes in the DA’s organic structures. The SPCMAD will report to the PIO as mandated.

Section 5. RPCO. RPCOs shall be created and organized in each of the six DA-RFUs. The RPCOs
shall be supported by existing staff of the DA-RFUs. They shall have the following functions:

a. Lead in the preparation of a regional multi-year and annual work and financial plan;

b. Provide technical assistance to enable LGUs to meet program policies, standards and processes;

c. Institutional use of participatory approach in the preparation of local development plans;

d. Ensure the integration of local plans into regional plans;

e. Process and validate sub-project proposals from the LGUs and provide feedback to the
proponents of on the status of such proposals;

f. Monitor the physical and financial progress of Provincial Program Management Implementing
units plan implementation in accordance with agreed reporting arrangements as prescribed in
the projects’ Management Information System and Monitoring and Evaluation System; and

g. Coordinate with partner agencies or other relevant institutions in the region with respect to
the delivery of required services of implementing units.

Section 6. Effectivity. This Executive Order shall take effect following its publication.

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DONE in the City of Manila, this 24* day of July, in the year of Our Lord, Two Thousand and
Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

EXECUTIVE ORDER NO. 643

PLACING THE PRESIDENTIAL COMMISSION ON GOOD GOVERNMENT (PCGG)
UNDER THE SUPERVISION OF THE DEPARTMENT OF JUSTICE

WHEREAS, Executive Order (EO) No. 1 s. 1986 created the Presidential Commission on Good
Government (PCGG) as a body vested with authority to file recovery cases involving ill-gotten wealth,
to undertake sequestration and preservation of ill-gotten wealth or properties, and to investigate and
file, through the Office of the Ombudsman, cases for graft and corruption as may be assigned to it
from time to time;

WHEREAS, EO 2 s. 1986 likewise authorizes the PCGG to request and appeal to the foreign
governments to freeze and prevent the transfer, conveyance, encumbrance, concealment or liquidation
of ill-gotten wealth or properties found within their respective jurisdictions, pending the outcome of
the appropriate proceedings in the Philippines;

WHEREAS, the authority of the PCGG to issue sequestration and freeze orders under
Proclamation No. 3 s. 1986 has lapsed in accordance with Section 26, Article XVIII of the Constitution;

WHEREAS, the functions of the PCGG are currently focused on the recovery and preservation of
ill-gotten wealth, as well as the proper investigation and prosecution of cases involving the same;

WHEREAS, there is a need to concentrate and enhance government efforts for the full and
effective recovery of ill-gotten wealth and properties, including the efficient investigation and
prosecution of cases relative thereto;

WHEREAS, as the principal legal counsel and prosecution arm of the government under Section 3,
Chapter 1, Title III, Book IV of the Administrative Code of 1987, the Department of Justice (DOJ) is
likewise involved in matters requiring international legal cooperation;

WHEREAS, Section 31 (3), Chapter 10, Title III, Book III, of the Administrative Code of
1987, authorities the President to transfer any agency under the Office of the President to any other
department or agency.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, by
virtue of the powers vested in me by law, do hereby order:

SECTION 1. Transfer of Functions. — The Presidential Commission on Good Government
(PCGG) shall hereby be placed under the administrative supervision of the Department of Justice.
Unless otherwise provided, the Secretary of Justice or his duly authorized representative shall exercise
the foregoing functions for and in behalf of the President.

SECTION 2. Implementing Rules and Regulations. — The Department of Justice shall issue the
implementing guidelines for the effective implementation of this Executive Order.

SECTION 3. Repealing Clause. — All executive issuances, rules and regulations or parts
thereof which are inconsistent with this Executive Order are hereby revoked, amended, or modified
accordingly.

SECTION 4. Effectivity. — This Executive Order shall take effect immediately.

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DONE, in the City of Manila this 27* day of July, in the year of Our Lord, Two Thousand and
Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

EXECUTIVE ORDER NO. 644

TRANSFERRING THE TOLL REGULATORY BOARD (TRB) FROM THE
DEPARTMENT OF TRANSPORTATION AND COMMUNICATIONS TO THE
DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS

WHEREAS, Presidential Decree No. 112 created the Toll Regulatory Board to closely supervise
and regulate the collection of toll fees for the use of certain public improvements and the operation of
toll facilities by the private sector viewed as an alternative source of financing to ensure the prosecution
of infrastructure projects that complement the overall national development effort;

WHEREAS, Section 23, Chapter 5, Title XV, Book IV of Executive Order No. 292 placed TRB
under the Department of Transportation and Communications as an attached agency;

WHEREAS, in keeping with the policy of the government of enhancing efficiency and effectiveness
in the implementation of government programs, the realignment of the assigned responsibilities with
respect to attached agencies of some Departments is imperative;

NOW, THEREFORE, I, GLORIA MACAPAGAL - ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Transfer Toll Regulatory Board to DPWH . The Toll Regulatory Board is hereby
transferred to and made an attached agency of the Department of Public Works and Highways
(DPWH).

SECTION 2. Repealing Clause . All executive orders, issuances, rules and regulations, or parts
thereof inconsistent with the provisions of this Order are hereby repealed, amended or modified
accordingly.

SECTION 3. Effectivity . This Executive Order shall take effect immediately.

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DONE in the City of Manila, this 30th day of July, in the year of Our Lord Two Thousand and
Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 645

AMENDING SECTION 4 OF EXECUTIVE ORDER NO 423 DATED 18 SEPTEMBER 2003
WHICH PRESCRIBES THE RULES AND PROCEDURES ON THE REVIEW AND APPROVAL OF
ALL GOVERNMENT CONTRACTS TO CONFORM TO REPUBLIC ACT NO. 9184 OTHERWISE
KNOWN AS “THE GOVERNMENT PROCUREMENT REFORM ACT”

WHEREAS, Section 4 of Executive Order 423 dated 18 September 2003 prescribes that in cases
where government contracts amounting to at least P500 Million, the Head of the Procuring Entity is
required to obtain an opinion and approval from the Government Procurement Policy Board and the
Director-General of the National Economic and Development Authority before resorting to any of the
alternative methods of procurement;

WHEREAS, it has become necessary to amend Section 4 of Executive Order No. 423 dated
18 September 2003 to streamline and expedite procurement procedures for a more effective
procurement system;

WHEREAS, the Government Procurement Policy Board, in its Resolution No. 06-2006 dated
20 January 2006, recommends the issuance of this Executive Order;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby amend Section 4 of Executive No.
423 to read as follows:

Section 4. Approval of Government Contracts Entered Into Through Alternative Methods of
Procurement

a. For Government Contracts Involving An Amount Of At Least Five Hundred
Million Pesos (P500,000,000.00) . - Where the Head of the Procuring Entity has made a
determination that a Government contract, including Government contracts required by
law to be acted upon and/or approved by the President, involving an amount of at least
Five Hundred Million Pesos (P500,000,000.00) falls under any of the exceptions from
public bidding described in Section 3 hereof, the Head of the Procuring Entity shall, before
proceeding with the alternative methods of procurement provided by law and applicable
rules and regulations, obtain the approval of the Government Procurement Policy
Board (GPPB) that said Government proposed procurement undertaking falls within
the exceptions from public bidding and that the proposed specific alternative mode of
procurement is appropriate.

Except for Government contracts required by law to be acted upon and/or approved
by the President, the Heads of the Procuring Entities, after obtaining the foregoing
requirements, shall have full authority to give final approval and/or to enter into said
Government contracts of their respective agencies, entered into through alternative methods
of procurement allowed by law. Provided, that the Head of the Procuring Entity certifies

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under oath that the contract has been entered into in faithful compliance with all applicable
laws and regulations.

SECTION 2. Except for the foregoing amendment, all other provisions of Executive Order No.
423 shall remain unchanged.

SECTION 3. This Executive Order shall take effect immediately upon its publication in a national
newspaper of general circulation.

Done in the City of Manila this 31st day of July, in the year of Our Lord, Two Thousand and
Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 646

ACCESSIBILITY OF INFORMATION ON TAXPAYERS BETWEEN THE BUREAU OF INTERNAL
REVENUE AND THE LOCAL GOVERNMENT UNITS FOR TAX COLLECTION PURPOSES

WHEREAS, information on taxpayers is vital to the effective collection of taxes by both the
national government and the local government units;

WHEREAS, the Bureau of Internal Revenue (BIR) and the Local Government Units (LGUs) can
help each other in their collection efforts through accessibility of information that they have on record
as regards their respective taxpayers;

WHEREAS, in order to ascertain the correctness of any return, or in making a return when none
has been made, or in determining the liability of any person for any internal revenue tax, or in collecting
any such liability, or in evaluating tax compliance. Section 5 (B) of the National Internal Revenue Code
of 1997 (NIRC) empowers the Commissioner of Internal Revenue to obtain on a regular basis from,
among others, any office or officer of the local governments any information such as, but not limited
to, costs and volume of production, receipts or sales, and gross income of taxpayers;

WHEREAS, Section 270 of the NIRC penalizes any BIR officer or employee who divulges
information regarding the business income, or estate of any taxpayer, the secrets, operation, style
or work, or apparatus of any manufacturer or producer, or confidential information regarding the
business of any taxpayer, knowledge of which was acquired by him in the discharge of his official
duties;

WHEREAS, as an exception to Section 270 of the NIRC, Section 171 of Republic Act No.
7160, otherwise known as the Local Government Code of 1991, provides that records of the revenue
district office of the BIR shall be made available to the local treasurer, his deputy or duly authorized
representative for the purpose of ascertaining, assessing, and collecting the correct amount of local
taxes, fees or charges.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. LGUs’ Access to Records/Information. - In order to ascertain, assess, and collect the
correct amount of local taxes, fees or charges, the BIR records pertaining to any person, partnership,
corporation or association subject to local taxes, fees, and charges shall be made available to the local
treasurer, his deputy or duly authorized representative.

SECTION 2. BIRs’ Access to Records/Information. - For the purpose of ascertaining the
correctness of any return, or in making a return when none has been made, or in determining the
liability of any person for any internal revenue tax, or in collecting any such liability, or in evaluating
tax compliance, the LGUs, upon proper request of the Commissioner of Internal Revenue or his duly
authorized representative, shall provide the BIR with any information such as, but not limited to, costs
and volume of production, receipts or sales, and gross incomes of taxpayers.

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SECTION 3. Utilization of Records/Information. - The LGUs’ access to records of, or information
provided for by, BIR and vice versa shall be utilized for the aforementioned purposes only, and shall
not be used for any other purpose, or disclosed to unauthorized persons.

SECTION 4. Guidelines. - The Department of Finance shall prepare and issue the necessary
guidelines for the effective implementation of this Executive Order, with due regard to the security of
taxpayers’ information.

SECTION 5. Administrative Penalty. - Failure on the part of the BIR and the LGUs to comply
with the directives under this Executive Order shall make them liable for administrative sanction
pursuant to existing laws, rules and regulations.

SECTION 6. Repealing Clause. - If any provision of this Executive Order is declared invalid, the
remainder thereof shall not be affected thereby.

SECTION 7. Separability Clause. - All laws, decrees, and orders, or parts thereof, inconsistent
therewith are deemed repealed or modified accordingly.

SECTION 8. Effectivity. - This Executive Order shall take effect immediately.

DONE in the City of Manila, this 3rd day of August, in the year of Our Lord, Two Thousand and
Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

EXECUTIVE ORDER NO. 647

AUTHORIZING AN EMINENT PERSONS GROUP TO OVERSEE THE SUSTAINABLE
DEVELOPMENT OF NASUGBU, BATANGAS TOURISM

Section 1. Declaring of Policy. - Consistent with the avowed policy of the State to promote
tourism in the country, the sustainable development of Nasugbu, Batangas as a priority tourism
destination is hereby declared. To this end the government shall plan, undertake, and cause the
implementation of support projects and programs to preserve the attractiveness of Nasugbu, Batangas
as a major tourism destination.

Section 2. Creation of a Special Tourism Zone. - Areas included in the Nasugbu Tourism
Development Plan prepared by the Municipality of Nasugbu and validated by the Philippine Tourism
Authority as Tourism Priority Areas are hereby proclaimed as a Special Tourism Zone.

Section 3. Empowering Eminent Persons to Oversee Nasugbu Tourism Development. - To ensure
the effective implementation of the above-stated policy, there is hereby recognized the existence of a
group of eminent persons concerned with the sustainable development of Nasugbu tourism. From such
a group, the President of the Philippines shall designate a Nasugbu Eminent Persons Group, composed
of a Chairman and at least four (4) Members, empowered to oversee the sustainable development of
Nasugbu tourism in behalf of the President of the Philippines and the Secretary of Tourism.

Section 4. Territorial Scope. - The territorial scope of Nasugbu special Tourism Zone shall
cover the areas included in the Nasugbu Tourism Development Plan prepared by the Municipality of
Nasugbu and validated by the Philippine Tourism Authority.

Section 5. Principal Area of Activity. - The principal area of activity of the Eminent Persons
Group shall be in Nasugbu, Batangas

Section 6. Powers. - The Eminent Persons Group shall have the following powers:

a. Formulate plans for the sustainable development of tourism in Nasugbu;

b. Recommend to the Philippine Tourism Authority such rules and regulations as may be
necessary to ensure compliance with the requirement of Nasugbu tourism’s sustainable
development;

c. Advocate to the people of Nasugbu, to their elected officials in the barangay, municipal and
provincial levels and to the national government, the policies that will foster the sustainable
development of Nasugbu;

d. Prioritize the major projects of Nasugbu as consistent with the plans for sustainable
development;

e. Coordinate enterprises within Nasugbu which may be necessary to the sustainable
development of Nasugbu;

f. Cause the proper land use projects and practices for Nasugbu; and

g. Ensure the preservation of the natural and cultural heritage of Nasugbu.

Section 7. Private Sector Nature. - So long as the Eminent Persons do not require government
funding for their activities, they shall retain their private sector character. If they so request and receive

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government funding for their activities, they shall acquire the nature of government officials and shall
therefore be subject to laws, rules and regulations applicable to government officials.

Section 8. Group Secretary. - The Eminent Persons Group shall have a Group Secretary who shall
be a government official to be appointed by the President of the Philippines.

Section 9. Administration and Control of the Philippine Tourism Authority. - The Philippine
Tourism Authority, through the Group Secretary of the Eminent Persons Group in coordination with
the Municipal Government of Nasugbu, shall exercise administration and control over Nasugbu
Special Tourism Zone pursuant to Section 5 (D) of PD 564.

Section 10. Appropriations. - The amount necessary for the compensation and operating expenses
of the Group Secretary shall be appropriated out of the funds of the Philippine Tourism Authority.

Section 11. Separability Clause. - If any provision of this Executive Order or the application of
such provision is declared unconstitutional or illegal, the remaining provisions shall not be affected by
such declaration.

Section 12. Repealing Clause. - All orders, rules, regulations and issuances, or parts thereof, which
are inconsistent with this Executive Order, are hereby revoked, amended or modified accordingly.

Section 13. Effectivity. - This Executive Order shall take effect immediately.

City of Manila, 03 August 2007.

(Sgd.) GLORIA MACAPAGAL- ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601
Malacanang Records Office.

700]. Manila:

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 648

ATTACHING THE NATIONAL TELECOMMUNICATIONS COMMISSION FROM THE
DEPARTMENT OF TRANSPORTATION AND COMMUNICATIONS (DOTC) TO THE
COMMISSION ON INFORMATION AND COMMUNICATIONS TECHNOLOGY (CICT)

WHEREAS, the National Telecommunications Commission (NTC) is attached to the Department
of Transportation and Communications;

WHEREAS, Section 20, Chapter 7, Title I, Book III of EO 292 (Administrative Code of 1987)
provides that the President has the continuing authority to reorganize the Executive Branch of
government;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. The National Telecommunications Commission is hereby attached from the
Department of Transportation and Communications to the Commission on Information and
Communications Technology.

SECTION 2. All executive issuances, rules and regulations, or parts thereof, inconsistent with this
Executive Order are hereby repealed, amended or modified accordingly.

SECTION 3. This Executive Order shall take effect immediately upon its publication in a national
newspaper of general circulation.

DONE in the City of Manila, this 6th day of August, in the year of Our Lord, Two Thousand and
Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 649

TRANSFERRING THE PHILIPPINE INTERNATIONAL TRADING CORPORATION FROM THE
OFFICE OF THE PRESIDENT TO THE DEPARTMENT OF TRADE AND INDUSTRY,

AND DESIGNATING THE SECRETARY OF HEALTH AS EX-OFFICIO
CHAIRMAN OF THE BOARD THEREOF

WHEREAS, the Philippine International Trading Corporation (PITC), by virtue of Executive
Order no. 345, series of 2004, was transferred from the Department of Trade and Industry (DTI) to the
Office of the President in order for the latter to closely monitor and oversee the efficient and effective
implementation of the Government’s commitment under the President’s 10-Point Legacy:

WHEREAS, pursuant to Executive Order No. 442, series of 2005, the PITC has been designated
as the lead coordinating agency to make quality, essential and life-saving medicines available,
affordable and accessible to the greater masses of Filipinos, in consonance with the Medium Term
Philippine Development Plan for 2005 - 2010;

WHEREAS, under Executive Order No. 326, series of 2004, the President shall appoint the
Chairman of the PITC Board;

WHEREAS, there is a need for the DTI to monitor the development, regulatory, and service
delivery undertakings of the PITC pertinent to international trade and commerce;

WHEREAS, it is imperative for the Secretary of Health to assume the chairmanship of the PITC
Board to ensure continuous supply of high quality, safe, effective and affordable drugs and medicines;
and

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, by
virtue of the powers vested in me by law, do hereby order:

SECTION 1. Transfer. - The Philippine International Trading Corporation (PITC) is hereby
transferred from the Office of the President to the Department of Trade and Industry.

SECTION 2. Chairman of the PITC Board. The Secretary of Health shall be the ex-
officio Chairman of the PITC Board.

SECTION 3. Repealing Clause. - All executive issuances or portions thereof which are
inconsistent with this Executive Order are hereby revoked, amended or modified accordingly

SECTION 3. Effectivity. - This Executive Order shall take effect immediately.

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DONE in the City of Manila, this 8th day of AUGUST, in the year of Our Lord, Two Thousand
and Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 649-A

AMENDING EXECUTIVE ORDER NO. 649 (S. 2007) BY DESIGNATING THE SECRETARY
OF TRADE AND INDUSTRY AS EX-OFFICIO CHAIRMAN OF THE BOARD, PITC AND
THE SECRETARY OF HEALTH AS EX-OFFICIO CHAIRMAN OF THE PITC-PHARMA, INC.,

AMONG OTHER PURPOSES

WHEREAS, pursuant to Executive Order (EO) No. 649 (s. 2007), the Philippine International
Trading Corporation (PITC) was transferred from the Office of the President to the Department of
Trade and Industry (DTI) so that the latter could effectively monitor the development, regulatory, and
service delivery undertakings of PITC pertinent to international trade and commerce;

WHEREAS, there is a need to transfer PITC-Pharma, Inc. to the Department of Health (DOH) to
ensure available, affordable and accessible medicine to the Filipino people;

WHEREAS, there is likewise a need to designate the Secretary of Trade and Industry as ex-officio
chairman of the PITC; and the Secretary of Health as ex-officio chairman of the PITC-Pharma, Inc.;
and

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, by
virtue of the powers vested in me by law, do hereby order:

SECTION 1. Section 2 of EO 649 (s. 2007) is hereby amended to read as follows:

“Section 2. Chairman of the PITC Board . - The DTI Secretary shall be designated as the ex-

officio Chairman of the PITC Board”

SECTION 2. A new section in EO 649 (s. 2007) shall be added to read as follows:

“Section 2-A. Transfer of PITC-Pharma, Inc, to DOH and designating the Secretary of

Health as ex-officio Chairman thereof . - The PITC-Pharma, Inc. shall be transferred to the DOH

and the Secretary of Health shall be designated as the ex-officio Chairman thereof.”

SECTION 3. Repealing Clause. — All executive issuances, rules and regulations or parts
thereof which are inconsistent with this Executive Order are hereby revoked, amended, or modified
accordingly.

SECTION 4. Fffectivity. — This Executive Order shall take effect immediately.

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City of Manila, 10 April 2008.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) IGNACIO R. BUNYE
Acting Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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OFFICE OF THE PRESIDENT
OF THE PHILIPPINES

malacaNang

malacaNang records office

EXECUTIVE ORDER NO. 650

Based on the records available on file and in the possession of Malacanang Records Office, Executive
Order No. 650 of Presidential Issuances of Gloria Macapagal-Arroyo was certified by their office as a
reserved number and that no original copy of this issuance was forwarded and released to them.

Malacanang Records Office. (2015). [Memorandum: certification and official count of Presidential
Issuances]. Manila: Malacanang Records Office.

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MALACANAN PALACE
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 651
STRENGTHENING THE GRASSROOTS PROGRAM OF THE
PHILIPPINE SPORTS COMMISSION

WHEREAS, Section 13, Article 11 of the 1987 Constitution declares that the State recognizes the
vital role of the youth in nation-building and shall promote their physical, moral, spiritual, intellectual
and social well-being;

WHEREAS, Section 17, Article 11 of the 1987 Constitution states that the State shall give priority
to education, science and technology, arts, culture and sports to foster patriotism and nationalism,
accelerate social progress, and promote total human liberation and development;

WHEREAS, in addition to the above principles. Section 19(1), Article XIV of the 1987
Constitution mandates that the State shall promote physical education and encourage sports programs,
league competitions, and amateur sports, including training for international competitions, to foster
self-discipline, teamwork, and excellence for the development of a healthy and alert citizenry;

WHEREAS, Filipinos have excelled in international competitions in such sports as boxing;

WHEREAS, the Philippines aspires to have at least one gold medal in the 2008 Beijing Olympics;

WHEREAS, studies made in the United States and Canada showed that children who played
chess performed better and received higher scores on standardized tests for both reading and math;

WHEREAS, the Medium Term Philippine Development Plan calls for strengthening education in
math, science and English;

WHEREAS, Republic Act No. 6847 created the Philippine Sports Commission (PSC) to carry out
the above conditional policies and principles in coordination with the various government departments
and agencies and private entities;

WHEREAS, the PSC has a Grassroots Program to carry out the above programs;

Now Therefore I, Gloria M. Arroyo, President of the Republic of the Philippines, by virtue of the
powers vested in me by the law, do hereby order:

SECTION 1. The Grassroots Program of the PSC shall be strengthened to develop potential gold
medalists in the Olympics as well as to encourage children to play chess so as to help their reading and
math skills.

SECTION 2. The Grassroots Program shall endeavor to:

a. Plan, implement and oversee a comprehensive educational and training program for boxing,
chess and other sports with Olympic gold potentials in coordination with various sectors
including, among others, the respective sports federations, the Philippine Olympic Committee,
public and private schools, local governments and private corporations;

b. Discover special talent and skills in boxing, chess and other sports with Olympic gold
potentials from among students enrolled in the country’s public and private schools through
competitive tournaments;

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c. Develop and hone the aptitude of boxing, chess and other sports with Olympic gold potentials
of known exceptional players including those discovered through tournaments;

d. Develop a pool of grade school and high school scholars in chess and sports with Olympic
gold potentials who will be given training and financial support;

e. Support aspiring potential Masters and Olympic gold medalists to gain their titles;

f. Develop and promulgate rules and regulations to implement this Executive Order;

g. Conduct promotional and awareness campaigns for chess and sports with Olympic gold
potentials to achieve the objectives of an Olympic gold and improved reading and math skills;
and

h. Exercise such other acts as are incident to or are appropriate and necessary in connection with
the strengthening of the program.

SECTION 3. The Grassroots Program for each sport shall be managed by a program Task Eorce
composed of five members to be appointed by the President from among the following:

a. PSC, Chairman

b. Philippine Olympic Committee, Co-Chairman

c. The relevant sports federation. Program Director

d. Philippine University Games, Member

e. Business Community, Member

SECTION 4. Each Task Eorce shall appoint from among its members a full-time Operating
Officer who shall direct and supervise the day-to-day operations of the Program and shall have control
and supervision over the administrative management of the Program.

SECTION 5. The Grassroots Program shall consist of the following three main components:

a. Eirst Phase - Early recruitment and training

b. Second Phase - Development and training of the talents of the National Training Pool for the
appropriate certification

c. Third Phase - Elite training and preparation for international competitions for the purpose of
obtaining an Olympic gold medal or Grandmaster title.

SECTION 6. The Program shall be provided with an operation fund of Eifty Million Pesos
(P50,000,000) to be drawn from the mandatory contribution of the Philippine Amusement and Games
Corporation to the PSC in addition to the annual budget appropriations from the PSC.

The PSC is hereby empowered to conduct fund raising activities by donations benefits and other
means for financial purposes of augmenting its operation budget.

SECTION 7. All executive issuances, orders, rules and regulations or parts thereof which are
inconsistent with this Executive Order are hereby repealed or modified accordingly.

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DONE in Manila on 7 August, 2007.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANAN PALACE
MANILA

EXECUTIVE ORDER NO. 652

CREATING THE PRESIDENTIAL TASK FORCE TO ASSESS, PLAN
AND MONITOR THE ENTIRE EDUCATIONAL SYSTEM

WHEREAS, Executive Order No. (EO) 273 (Series of 2000) created a National Coordinating
Council for Education (NCCE);

WHEREAS, EO 632 amended EO 273 (Series of 2000) and mandated a Presidential Assistant
(PA) for Education in place of the NCCE to assess, plan and monitor the entire educational system;

WHEREAS, pursuant to EO 273 now EO 632, in the discharge of its functions and
responsibilities, the NCCE now the Office of the PA for Education may commission highly qualified
experts/specialists and/or education consultancy groups to provide specific services;

NOW, THEREFORE I, GLORIA M. ARROYO, President of the Republic of the Philippines, by
virtue of the powers vested in me by law, do hereby order:

Section 1. Creation. - There is hereby created the Presidential Task Force to Assess, Plan and
Monitor the Entire Educational System.

Section 2. Composition and Organization. - The Task Force shall be composed of the following:

1. ) Secretary, Department of Education

2. ) Chairman, Commission on Higher Education

3. ) Chairman, Technical Education and Skills Development Authority

4. ) Presidential Assistant for Education

5. ) Five (5) representatives from the private sector to be appointed/designated by the President.

The Chairman of the Task force shall be designated by the President from among the
representatives from the private sector, and co-chaired by the Chairman, Commission on Higher
Education.

Section 3. Powers and Functions. - The Task Force shall exercise the following functions and
duties:

1. To design a mechanism in the holding of regular for a for trans-subsectoral consultations on
cross-cutting policies and programs;

2. To identify strategies to dovetail the goals and objectives of the education system, especially
tertiary education, to national development plans;

3. To review existing and proposed programs from all the three (3) education agencies of
government and other government agencies with education programs for tighter inter-
subsector coordination;

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4. To provide guidelines in setdng priorides for the education system, especially tertiary
education, and recommend corresponding financial requirements;

5. To design the monitoring scheme for the implementation of reforms proposed by the PCER
as updated by the Medium Term Philippine Development Plan of the Arroyo administration,
especially on tertiary education;

6. To provide directions in the establishment of the National Educational Evaluation and Testing
Systems and Operations, as well as oversee and monitor the implementation thereof;

7. To recommend and provide guidelines for Philippine representatives in international and
national conferences/meetings with cross-cutting themes or concerns in education; and

8. To lead in the convening of a biennial National Congress in Education involving the three
(3) levels for the purpose of assessing, updating/upgrading and strengthening the entire
educational system and its components.

Section 4. Inter-Agency Assistance and Coordination. - All other departments, bureaus, offices,
agencies and instrumentalities of the government, including government-owned or controlled
corporations, are hereby directed to cooperate with the Task Eorce in the performance of its mandate
under this Executive Order.

Section 5. Rewards. - The members of the Task Eorce shall be entitled to rewards, incentives and
other entitlements as may be provided under existing laws and pertinent rules and regulations.

Section 6. Report. - The Task force shall submit its report and proposal to the President not later
than twelve (12) months from the start of its function.

Section 7. bunding. - The funds for the Task Eorce shall be drawn from the budget of the PA for
Education as specified in Section 12 of EO 273 (Series of 2000) as amended by EO 632.

Section 8. Repealing Clause. - All other orders, issuances, rules and regulations, or parts thereof
which are inconsistent with this Executive Order are hereby repealed or modified accordingly.

Section 9. Effectivity. - This Executive Order shall take effect immediately.

DONE in the City of Manila, this 21st day of August, in the year of Our Lord, two thousand and
seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 652-A

AMENDING EXECUTIVE ORDER NO. 652 (SERIES OF 2007) BY INCLUDING THE
CHAIRMAN OF THE PROFESSIONAL REGULATION COMMISSION AS A MEMBER OF THE
PRESIDENTIAL TASK FORCE TO ASSESS, PLAN AND MONITOR
THE ENTIRE EDUCATIONAL SYSTEM

WHEREAS, Executive Order No. 652 (Series of 2007) created the Presidential Task Force to
Assess, Plan and Monitor the Entire Educational System;

WHEREAS, Section 2 of the Executive Order No. 652 enumerates the composition and
organization of the Presidential Task Force to Assess, Plan and Monitor the Entire Educational System,
namely:

1. Secretary, Department of Education

2. Chairman, Commission on Higher Education

3. Director General, Technical Education and Skills Development Authority

4. Presidential Assistant for Education

5. Five (5) representatives from the private sector to be appointed/designated by the President

WHEREAS, there is a need to synchronize and harmonize the government’s educational
policies, programs and initiatives becomes all the more urgent given our country’s standing in world
competitiveness;

WHEREAS, such a need makes it imperative to include in the Presidential Task Force to Assess,
Plan and Monitor the Entire Educational System, the Professional Regulation Commission (PRC);

NOW THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

Section 1. Amendment. Section 2 of Executive Order No. 652 dated August 21, 2007 is hereby
amended to read, as follows:

“Section 2. Composition and Organization. - The Task Force shall be composed of

the following:

1. Secretary, Department of Education

2. Chairman, Commission on Higher Education

3. Director General, Technical Education and Skills Development Authority

4. Chairman, Professional Regulation Commission

5. Presidential Assistant for Education

6. Five (5) representatives from the private sector to be appointed/designated by the President”

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Section 2. Repealing Clause . - All executive issuances inconsistent with this Executive Order are
hereby repealed or amended accordingly.

Section 3. Effectivity. - This Executive Order shall take effect immediately.

DONE in the City of Manila, this 25th day of September, in the year of Our Lord, two thousand
and seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacahang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacahang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 652-B

AMENDING FURTHER EXECUTIVE ORDER NO. 652 (SERIES OF 2007) BY INCLUDING
THE CHAIRMAN OF THE COORDINATING COUNCIL OF PRIVATE EDUCATIONAL
ASSOCIATIONS (COCOPEA) AS REPRESENTATIVE FROM THE PRIVATE SECTOR TO THE
PRESIDENTIAL TASK FORCE TO ASSESS, PLAN AND MONITOR
THE ENTIRE EDUCATIONAL SYSTEM

WHEREAS, Executive Order No. 652 (series of 2007) created the Presidential Task Force to
Assess, Plan and Monitor the Entire Educational System;

WHEREAS, Section 2 of Executive Order No. 652 enumerates the composition and organization
of the Presidential Task Force to Assess, Plan and Monitor the Entire Educational System, namely:

1. Secretary, Department of Education

2. Chairman, Commission on Higher Education

3. Director General, Technical Education and Skills Development Authority

4. Presidential Assistant for Education

5. Five (5) representatives from the private sector to be appointed/designated by the President

WHEREAS, Executive Order No. 652-A, dated September 25, 2007, amended Section 2 of the
Executive Order No. 652 by including the Chairman of the Professional Regulation Commission as a
member of the Presidential Task Force to Assess, Plan and Monitor the Entire Educational System;

WHEREAS, the need to synchronize and harmonize the government’s educational policies,
programs and initiatives becomes all the more urgent given our country’s standing in world
competitiveness;

WHEREAS, such a need makes it imperative to include in the Presidential Task Force to Assess,
Plan and Monitor the Entire Educational System, the Chairman of the Coordinating Council of Private
Educational Associations (COCOPEA) as a representative from the private sector, increasing to six (6)
the representatives from the private sector to be appointed/designated by the President;

NOW THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

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Section 1. Amendment. Section 2 of Executive Order No. 652 dated August 21, 2007 is hereby
further amended to read as follows:

“Section 2. Composition and Organization. - The task force shall be composed of the
following:

1. Secretary, Department of Education

2. Chairman, Commission on Eligher Education

3. Director General, Technical Education and Skills Development Authority

4. Chairman, Professional Regulation Commission

5. Presidential Assistant for Education

6. Six (6) representatives from the private sector to be appointed/designated by the
President.”

Section 2. Repealing Clause - All executive issuances inconsistent with this Executive Order are
hereby repealed or amended accordingly.

Section 3. Effectivity. - This Executive Order shall take effect immediately.

Done in the City of Manila, this 18th day of January, 2008.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 601
Malacanang Records Office.

700]. Manila:

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 653
AMENDING EXECUTIVE ORDER NOS. 380 AND 380-A,
SERIES OF 2004 AND 2006, RESPECTIVELY

WHEREAS, Presidential Decree (PD) No. 1084 created the Public Estates Authority (PEA);
WHEREAS, Executive Order (EO) No. 380 dated October 26, 2004 transformed the PEA into
the Philippine Reclamation Authority (PRA), with the non-reclamation assets and liabilities transferred
to the Department of Finance (DOF);

WHEREAS, EO No. 380-A dated April 3, 2006 clarified certain provisions of EO No. 380
(2004), whereby only non-reclamation assets were to be transferred to the National Government;

WHEREAS, the agreement of PRA with DOF to convey to the latter a 62-hectare reclaimed land
in Central Business Park I - Islands B & C (CBP-IBC) in Paranaque City in exchange for the DOF’s
assumption PRA’s liabilities never materialized;

WHEREAS, there is a need to clarify further what reclamation assets should be retained by PRA;
WHEREAS, the Philippine Amusement and Gaming Corporation (PAGCOR) is interested in
acquiring 40-hectares of the CBP-IBC property, and PRA has reserved such portion to PAGCOR by
way of a Memorandum of Understanding dated May 19, 2006.

WHEREAS, the amendment of Section 3 of EO Nos. 380 and 380-A, series of 2004 and 2006,
respectively, is necessary.

NOW, THEREFORE, I, GLORIA MACAPAGAL ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

Section 1. Section 3 of Executive Order No. 380 dated October 26, 2004 and Section 3 of
Executive Order No. 380-A dated April 3, 2006 are hereby amended as follows:

“Section 3. The reclamation assets to be retained by PRA shall include all its existing
reclaimed lands, whether fully or not, developed or undeveloped; all those lands to be
reclaimed; all horizontal and vertical improvements and buildings on reclaimed lands, all
the funds derived from disposition or use of reclaimed lands; all other properties acquired
by PRA through the proceedslincome of reclaimed lands and reclamation undertakings; and
proceeds/income of all PRA properties acquired from the preceding reclamation assets.

It is hereby understood that no liability shall be transferred to the National
Government.”

Section 2. All executive orders, rules and regulations and other issuances or parts thereof, which
are inconsistent with this Executive Order, are hereby revoked, amended, or modified accordingly.

Section 3. This Executive Order shall take effect fifteen (15) days after its publication in a national
newspaper of general circulation.

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DONE in the City of Manila, this 9th day of August, in the year of Our Lord, Two Thousand and
Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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OFFICE OF THE PRESIDENT
OF THE PHILIPPINES

malacaNang

malacaNang records office

EXECUTIVE ORDER NO. 654

Based on the records available on file and in the possession of Malacanang Records Office,
Executive Order No. 654 of Presidential Issuances of Gloria Macapagal-Arroyo was certified by their
office as a reserved number and that no original copy of this issuance was forwarded and released to
them.

Malacanang Records Office. (2015). [Memorandum: certification and official count of Presidential
Issuances]. Manila: Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 655

CREATING THE PRESIDENTIAL TASK FORCE ON THE SECURITY OF ENERGY FACILITIES
AND ENFORCEMENT OF ENERGY LAWS AND STANDARDS

WHEREAS, Republic Act (RA) No. 7638 creating the Department of Energy (DOE) provides in
Section 2 thereof a State policy that ensures a continuous, adequate and economic supply of energy
with the end in view of ultimately achieving self-reliance in the country’s energy requirements through
the integrated and intensive exploration, management, and development of the country’s indigenous
energy resources, and through the judicious conservation, renewal and efficient utilization of energy
to keep pace with the country’s growth and economic development and taking into consideration the
active participation of the private sector in various areas of energy resource development;

WHEREAS, the rationalization, integration, and coordination of various programs of the
government towards self-sufficiency and enhanced productivity in power and energy without sacrificing
ecological considerations is also provided in RA No. 7638;

WHEREAS, the DOE is mandated to exercise supervision and control over all government
activities relative to energy projects, and regulate private sector activities as provided under existing
laws;

WHEREAS, there is a need to ensure the security and protection of energy and power related
facilities and associated infrastructure, and enforcement of energy and related laws and standards, to
safeguard the welfare of the consumers against violators of energy rules and regulations, such as in
liquefied petroleum gases and smuggling of petroleum products, amongst others;

WHEREAS, there is a need to have a comprehensive plan and national coordinating mechanism
on the protection of energy facilities and enforcement of energy and related laws and standards, to
ensure efficiency and effectiveness in the management of energy resources relative to their exploration,
development, utilization, distribution, and conservation.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

Section 1. The Presidential Task Force on the Security of Energy Facilities and Enforcement of
Energy Laws and Standards. - The Presidential Task Force on the Security of Energy Facilities and
Enforcement of Energy Laws and Standards, hereinafter referred to as the PTF-SEFEELS, is hereby
created under the Presidential Anti-Organized Crime Commission (PAOCC), to be headed by the
Department of Energy (DOE). The PTF-SEFEELS shall act with resolve and urgency to ensure the
security and protection of energy and power-related facilities and associated infrastructures and
enforcement of energy and related laws and standards.

Section 2. Composition. - The PTF-SEFEELS shall be composed of the Department of Energy
as Chair, with the Departments of National Defense (DND), Interior and Local Government (DILG),
Environment and Natural Resources (DENR), Science and Technology (DOST), and Trade and
Industry (DTI) as members.

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Section 3. Functions and Responsibilities. - The PTF-SEFEELS shall have the following functions
and responsibilities:

1. Eormulate a comprehensive national plan for the security and protection of energy and
power-related facilities and associated infrastructure;

2. Provide overall coordination in the implementation of the national plan;

3. Monitor and evaluate the implementation of the national plan. Regular security inspection
and review of specific security plans of energy and power-related facilities and infrastructure
shall be conducted;

4. Conduct regular assessment of potential threats, both man-made and natural, to the energy
and power-related infrastructure;

5. Coordinate and provide assistance in the enforcement of energy and related laws and
standards;

6. Conduct enforcement operations on compliance to energy and related laws and standards;

7. Recommend policies and strategies to improve the security and protection of energy and
power related facilities and enforcement of various energy and related laws and standards;

8. Eormulate and implement innovative and strategic interventions that are inter-agency in
nature;

9. Conduct information and education campaign on the need for securing and protecting energy
and power-related facilities and enforcing various energy and related laws and standards; and

10. Perform such other functions as may be directed by the President.

Section 4. Operations Center. - An Operations Center is hereby created, based at the DOE.
The Operations Center shall be headed by an Executive Director, with the rank of Undersecretary
whose designation shall be approved by the President. The personnel of the Operations Center shall
be recruited and contributed by members of the PTE-SEPEELS, to be designated by the Chair with the
approval of the President.

Section 5. Deactivation of the National Anti-Environment Crime Task Force. - The National
Anti-Environment Crime Task Eorce (NAECTAE) created under the PAOCC through Executive Order
(EO) No. 515 issued on March 15, 2006 is hereby deactivated. All personnel and assets assigned to
NAECTAE shall be transferred to the PTE-SEEEELS.

Section 6. Agency Assistance. - All departments, agencies, offices or instrumentalities, including
government-owned or controlled corporations, are hereby directed to provide support, assistance and
resources of the PTE-SEEEELS in the discharge of its functions.

Section 7. Funding. - The PTF-SEFEELS shall source its operational fund from unprogrammed
funds of the DOE, and/or as may be recommended and/or approved by the Department of Budget and
Management (DBM). Starting budgetary year 2008, its operating budget shall be incorporated in the
budgetary allocation of the DOE and member-agencies. The initial funds shall be used for the operation
of the PTE-SEPEELS and the Operations Center, preparation of national plans and information and
education campaigns, and enforcement activities.

Section 8. Non-Diminution of Mandates. - Nothing in this Executive Order shall diminish the
mandates, functions and responsibilities of all concerned agencies.

Section 9. Repeal. - All executive orders, rules and regulations and other issuances or parts
thereof, which are inconsistent with this Executive Order, are hereby revoked, amended, or modified
accordingly.

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Section 10. Effectivity. - This Executive Order shall take effect fifteen (15) days after its
publication in a national newspaper of general circulation.

DONE in the City of Manila, this 22nd day of August, in the year of Our Lord, Two Thousand
and Seven.

(Sgd.) GLORIA MACAPAGAL- ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANAN PALACE
MANILA

EXECUTIVE ORDER NO. 656
CREATING AN INTERNATIONAL MEDIA OFFICE

I, GLORIA MACAPAGAL ARROYO, President of the Philippines, by the powers vested in me by
law, do hereby order:

SECTION 1. There is hereby created an International Media Office (IMO) under the Office of
the Press Secretary with support and additional staff seconded by the Department of Foreign Affairs,
the National Security Council, the Philippine Information Agency, the Department of Tourism, the
Department of Trade and Industry, and the Department of Labor and Employment. The Investor
Relations Office is hereby enjoined likewise to support the IMO.

SECTION 2. The IMO is mandated to monitor overseas media coverage and plan/coordinate
initiatives to project government messages in international media in support of national interests and
governance thrusts in security, law and order, economic, diplomatic, political, social and other areas.

SECTION 3. The IMO shall coordinate closely with our Philippine embassies and consulates
abroad.

SECTION 4. The IMO shall be provided with a fund of Thirty Million Pesos (P30,000,000.00)
for communication campaigns, charged to the Office of the Press Secretary and other sources as may
be identified by the Department of Budget and Management.

DONE in the City of Manila, this 24* day of August, in the year of our Lord, Two Thousand and
Seven.

(Sgd.) GLORIA MACAPAGAL- ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601
Malacanang Records Office.

700]. Manila:

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 657

AMENDING SECTION 1 OF EXECUTIVE ORDER NO. 480 DATED 27 DECEMBER 2005

WHEREAS, the Presidential Anti-Organized Crime Commission (PAOCC) was created under the
Office of the President to bring about focus and substantive results in the campaign of the Government
against criminality;

WHEREAS, the membership of the PAOCC had been updated several times to meet the exigencies
of changing times, the latest of which was by virtue of Executive Order No. 480 (s. 2005);

WHEREAS, enhanced coordination between the Government and the private sector is important
in the fight against criminality;

WHEREAS, the Administrative Code of 1987 empowers the President with the continuing
authority to reorganize the Office of the President;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, by
virtue of the powers vested in me by law, do hereby order:

SECTION 1. Amendment of Section 1 of Executive Order No. 480 (s. 2005). - Section 1 of
Executive Order No. 480 (s. 2005) is hereby amended to read as follows:

“The Presidential Anti-Organized Crime Commission shall now be composed of the following:

The President

Chairman

The Secretary of the Interior and Local Government

Vice-Chairman

The National Security Adviser

Member

The Secretary of Justice

Member

The Secretary of National Defense

Member

The Secretary of Transportation and Communications

Member

The Secretary of Foreign Affairs

Member

Four (4) representatives from the Private Sector to be
appointed by the President

Member

The President may designate a Co- Vice-Chairman from among the members representing the
private sector.”

SECTION 2. Repealing Clause. - All executive issuances or portions thereof which are
inconsistent with this Executive Order are hereby revoked, amended or modified accordingly.
SECTION 3. Effectivity . - This Executive Order shall take effect immediately.

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DONE in the City of Manila, this 28th day of August, in the year of Our Lord, Two Thousand
and Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANAN PALACE
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 658

ADJUSTING THE COLLATERAL ENTITLEMENT OF UNIFORMED MEMBERS OF THE
ARMED FORCES OF THE PHILIPPINES WHO DIRECTLY ENGAGE IN ACTUAL COMBAT
AGAINST MEMBERS OF THE DIFFERENT NATIONAL SECURITY THREAT GROUPS

WHEREAS, the Government fully appreciates the heroism and sacrifices of the members of the
Armed Forces of the Philippines (AFP) who are directly involved in combat operations to preserve the
internal security of the country;

WHEREAS, the Government recognizes that the effectiveness of these frontline soldiers in the
pursuit of their mandated tasks is largely dependent on a host of factors which include, among others,
the adequacy of their compensation and benefits;

WHEREAS, in acknowledgment of this reality, it is the policy of the Government to provide,
within its fiscal means, such deserving members of the armed forces a more rational collateral pay for
combat duties;

WHEREAS, the Government recognizes that the attainment of socio-economic and political
reforms only becomes possible under conditions of secure and stable environment.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Combat Incentive Pay - Members of the Armed Forces of the Philippines who
figure directly in actual combat against members of the various insurgent, terrorist and lawless groups
shall be entitled to an additional combat incentive pay of PhpliO.OO per day while actually engaged
in combat operation effective July 1, 2007. This collateral pay shall be over and above the Php240.00
per month that members of the Armed Forces of the Philippines assigned in field units are currently
entitled to for combat duties.

SECTION 2. Specific Guidelines - The grant of the collateral pay shall be subject to conditions
as follows:

a. The operation must be for a specific combat mission that is duly covered by an Operations
Order (OPORD) or a Fragmentary Order (FRAG-O);

b. The personnel involved in combat engagements must be in the published task organization
of the OPORD; and,

c. The total additional combat incentive pay for each individual shall not exceed Phpl,500.00
per OPORD/FRAG-O.

SECTION 3. Funding - The initial funding of Seventy Three Million (Php73, 000,000. 00)
Pesos necessary to implement this Executive Order shall be drawn from the President’s Social Fund
(PSF) subject to established accounting and auditing rules and regulations. Any additional funding
requirement for fiscal years 2007 and 2008 shall be determined in coordination with the Department

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of Budget and Management (DBM) and shall be submitted to the Office of the President for approval.
Thereafter, appropriations starting fiscal year 2009 shall be incorporated in the General Appropriations
Act.

SECTION 4. Implementing Guidelines - The Department of National Defense shall prepare and
issue the necessary guidelines for the implementation of this Executive Order.

SECTION 5. Repeal - All executive orders, rules and regulations, and other or parts thereof,
which are inconsistent with this Executive Order, are hereby revoked, amended, or modified
accordingly.

SECTION 6. Effectivity - This Executive Order shall take effect fifteen (15) days after its
publication in a national newspaper of general circulation.

DONE in the City of Manila, this 6th day of September, in the year of Our Lord Two Thousand
and Seven.

(Sgd.) GLORIA MACAPAGAL- ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 659

IMPROVING THE NEGOTIABILITY AND ACCEPTABILITY OF AGRARIAN REFORM BONDS

WHEREAS, Section 2, Chapter I of Republic Act No. 6657, otherwise known as the
Comprehensive Agrarian Reform Law (CARL), as amended, provides, among others, that “The
State shall provide incentives to landowners to invest the proceeds of the agrarian reform program
to promote industrialization, employment and privatization of public sector enterprises. Financial
instruments used as payment for lands shall contain features that shall enhance negotiability and
acceptability in the marketplace”.

WHEREAS, Section 18 (4), Chapter VI, of the same law, allows the Land Bank of the Philippines
(LBP) Bonds and/or Agrarian Reform (AR) Bonds as the financial instruments to be used for paying
lands under the CARP up to the amount of their value and/or acquiring shares of stock of government
financial institutions, and in paying for various taxes and fees to government;

WHEREAS, Executive Order No. 267, s. 1995, provides for the issuance of national government
bonds known as Agrarian Reform Bonds which are negotiable at anytime and which AR Bonds
replaced the LBP Bonds or land transfer payments under the agrarian reform program with the same
features of the LBP Bonds;

WHEREAS, although a major feature of the AR Bonds is alignment of the market interest rate
with the 91 -day treasury bill, these bonds are not competitive with similar government securities
like Small Denominated Treasury (SDT) Bonds, ERAP Bonds, and the Bankers Association of the
Philippines (BAP)-sponsored issue of Pag-IBIG Bonds;

WHEREAS, complaints have been lodged by the affected landowners on the lack of acceptability
of their bonds compared to other government bonds, and in the refusal of government entities to accept
directly from landowners, AR Bonds at face value, but at a discounted price lessening the credibility
of government bonds as instruments of indebtedness and further strengthening the resistance of
landowners whose lands are sought to be taken and paid for with these government bonds.

WHEREAS, the aforementioned conditions also diminish the just compensation due the
landowners when their landholdings are covered under the Comprehensive Agrarian Reform Program
(CARP);

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, by
virtue of the powers vested in me by law, do hereby order:

SECTION 1. National Government Guaranty. AR Bonds are deemed and considered as issued
by the National Government. These bonds are the direct, unconditional and general obligation of the
Republic of the Philippines.

SEC. 2. Features ofAR Bonds. AR Bonds shall have the following features:

a. Market interest rates aligned with 91 -day treasury bill rates. Ten percent (10%) of the face
value of the bonds shall mature every year thereafter from the date of issuance of the bond;

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Provided, that should a landowner choose to forego the cash portion, whether in full or in
part, he shall be paid correspondingly in AR Bonds.

b. Transferability and negotiability. The AR Bonds may be used by the landowner, his successors-
in-interest or his assigns.

SEC. 3. Usage of AR Bonds. AR Bonds may be used by the landowner, his successor-in-interest or
his assignees, up to the amount of their face value, for any of the following:

a. Acquisition of land or other real properties of the government, including assets under the Asset
Privatization Program and other assets foreclosed by government financial institutions in the
same province or region where the lands for which the bonds were paid are situated;

b. Acquisition of shares of stock of government-owned or controlled corporations or shares of
stock owned by the government in private corporations;

c. Substitution for surety or bail bonds for the provisional release of accused persons, or for
performance bonds;

d. Security for loans with any government financial institution, provided the proceeds of the loans
shall be invested in an economic enterprise, preferably in a small and medium scale industry, in
the same province or region as the land for which the bonds are paid;

e. Payment for various taxes and fees to the government, provided that the use of these bonds
for these purposes shall be limited to a certain percentage of the outstanding balance of the
financial instruments, and provided further, that the Presidential Agrarian Reform Council
(PARC) shall determine the percentage mentioned above.

f. Payment for tuition fees of the immediate members of the family of the original bondholder in
government universities, colleges, trade schools, and other institutions;

g. Payment of fees of the immediate members of the family of the original bondholder in
government hospitals; and

h. Such other uses as the PARC may, from time to time, allow.

SEC. 4. Acceptance ofAR Bonds as Payment

a. The portion of the 10-year AR Bond that has matured or will mature within the given year in
which the tax liability shall be paid or for such percentage of the outstanding balance of the
bond as determined by the PARC under Sec. 18, (4) (v) of RA 6657 of the AR Bonds held by
the landowner/taxpayer and/or successors-in-interest or assignees shall be accepted as payment
for tariff and duties and the following internal revenue tax liabilities, but not limited to, except
withholding tax for non-withholding or non-remittance of taxes withheld;

a.l Income taxes;

a.2 Capital gains tax due from individual taxpayers;

a. 3 Estate tax;

a. 4 Donor’s tax;

a. 5 Value added tax (VAT);

a. 6 Excise tax;

a. 7 Other percentage taxes;

a. 8 Deficiency tax assessment arising from tax investigations;

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a. 9 Surcharge, interest and penalties arising from late filling of returns and/or payment of
taxes; and

a. 10 Tax arrearages and penalties.

b. The 10-year AR Bonds can be used up to the amount of their face value by the landowner, in
whose name the bonds were issued, as well as by his successors-in-interest or assignees, for the
following:

b. l Payment of real estate taxes, interest charges and penalties;

b.2 Payment of various fees, interest charges and penalties that may be assessed against
private or government banks and other financial institutions by the Bangko Sentral ng
Pilipinas and other government agencies in the course of their operation;
b.3 Acquiring shares of stock of government-owned and/or controlled corporations or shares
of stock owned by the government in private corporations;
b.4 Security deposit of foreign corporations with the Securities and Exchange Commission
(SEC); and

b.5 Performance bond of housing contractors with the Housing and Land Use Regulatory
Board (HLURB).

c. AR Bonds shall be accepted as collateral for securing loans from government financial
institutions but at a discounted value, subject to the condition that the proceeds of the loan are
to be invested in an economic enterprise.

SEC. 5. Eligibilities. AR Bonds shall enjoy the same form of eligibilities granted to SDT Bonds,
ERAP Bonds, BAP-sponsored Pag-IBIG Bonds and other government bonds that may be issued in the
future. Such eligibilities include, among others, the following:

a. Capital reserve instruments for insurance companies and investment for Reserve funds for pre-
need companies;

b. Performance and judicial bonds;

c. Reserve for trust duties;

d. Liquidity floor requirements for government funds or deposits;

e. Investments for small and medium enterprises (SME) funds; and

f. Compliance with Agri-Agra Law.

SEC. 6. Assistance of Other Government Entities. The assistance of the Department of Einance
(DoE) and the Department of the Interior and Local Government (DILG) and other concerned
government agencies is hereby enjoined to extend full support to the AR Bonds as mandated by law.

SEC. 7. Implementing Guidelines. The EBP shall issue the guidelines to implement the provisions
of this Executive Order in coordination with concerned government agencies.

SEC. 8. Administrative Sanctions. Eailure to follow the directives of this Executive Order within
30 days from effectivity thereof shall subject concerned officials to administrative sanctions pursuant
to existing laws, rules and regulations.

SEC. 9. Repealing Clause. All Executive Orders, issuances, rules and regulations, or parts
thereof, inconsistent with the provisions of this Executive Order are hereby repealed and/or modified
accordingly.

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SEC. 10. Effectivity. This Executive Order shall take effect immediately upon publication in a
national newspaper of general circulation.

DONE in the City of Manila, this 11th day of September, in the year of Our Lord, Two Thousand
and Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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REPUBLIC OF THE PHILIPPINES
MALACANANG
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 660

RATIONALIZING THE TAX PRIVILEGE COVERING IMPORTATIONS BY REGISTERED
ENTERPRISES WITHIN THE SUBIC SPECIAL ECONOMIC ZONE,

AND FOR OTHER PURPOSES

WHEREAS, under existing law, registered businesses and enterprises within the Subic Special
Economic Zone are exempt from national internal revenue taxes and customs duties on their
importations of raw materials, capital goods and equipment for their business operations;

WHEREAS, there is a need to ensure that raw materials, capital goods and equipment, which will
be imported by registered enterprises within the Subic Special Economic Zone, are only those required
for their business activities and operations;

WHEREAS, the Government needs additional revenue to finance the country’s economic and
development programs and projects.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, by
virtue of the powers vested in me by law, do hereby order and direct as follows:

SECTION 1. Importations of registered businesses and enterprises or locators within the Subic
Special Economic Zone in excess of the requirements of their registered business or authorized business
activity consisting of raw materials, capital goods and equipment shall be deemed brought into or
sold within the customs territory and, therefore, subject to the payment of taxes and customs duties in
accordance with existing customs and tax laws.

SECTION 2. The Bureau of Customs and the Bureau of Internal Revenue, in coordination with
the Subic Bay Metropolitan Authority, shall issue appropriate issuances or circulars to clarify and/or
simplify the documentation, procedures, tax treatment and payment of taxes and duties of the excess
importations with the end view of effectively implementing this Order.

SECTION 3. All executive issuances, rules and regulations or parts thereof, which are inconsistent
with this Executive Order, are hereby repealed or modified accordingly.

SECTION 4. This Executive Order shall take effect immediately.

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Done in the City of Manila, this 13th day of September, in the year of Our Lord, two thousand
and seven.

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

(Sgd.) GLORIA MACAPAGAL-ARROYO

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 661

DIRECTING THE LOCAL GOVERNMENT UNITS IN AREAS NEAR OR ADJACENT TO
GEOTHERMAL-PRODUCING SITES IN ALBAY, LAGUNA, LEYTE, NEGROS ORIENTAL,
SORSOGON AND ALBAY, NORTH COTABATO, AND NEGROS OCCIDENTAL
TO DEVELOP ECONOMIC ZONES

WHEREAS, the Philippines has one of the highest industrial power rates in Southeast Asia;

WHEREAS, majority of biggest power consumers are industrial locators in economic zones;

WHEREAS, there is a compelling need for a more reliable, economical, competitive, and efficient
power supply to provide quality electricity to power-sensitive industrial locators in the economic zones
and to encourage future locators;

WHEREAS, the government is adopting measures that would give open access to private and
publicly-owned economic zones in sourcing their power with the end in view of lowering the power
cost in the economic zones and to promote competitiveness;

WHEREAS, the government has identified, as potential sources of power for economic zones,
seven (7) geothermal facilities, namely: (1) Tiwi in Albay; (2) MakBan, which borders Makiling and
Banahaw in Laguna; (3) Tongonan, which borders Ormoc and Kananga in Leyte; (4) Palinpinon in
Valencia, Negros Oriental; (5) BacMan, which borders Bacon and Manito in Sorsogon and Albay,
respectively; (6) Mt. Apo in the border of Kidapawan, North Cotabato; and (7) Murcia in Negros
Occidental;

WHEREAS, declaring certain areas adjacent to these geothermal-producing sites as economic
zones will provide alternative locations for investors.

NOW, THEREEORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

Section 1. The respective local government units (LGUs) in areas near or adjacent to the following
geothermal-producing sites shall develop economic zones in coordination with the Philippine Economic
Zone Authority (PEZA):

(1) Tiwi in Albay;

(2) MakBan, which borders Makiling and Banahaw in Laguna;

(3) Tongonan, which borders Ormoc and Kananga in Leyte;

(4) Palinpinon in Valencia, Negros Oriental;

(5) BacMan, which borders Bacon and Manito in Sorsogon and Albay, respectively;

(6) Mt. Apo in the border of Kidapawan, North Cotabato; and

(7) Murcia in Negros Occidental

Section 2. The PEZA shall assist the LGUs concerned in the creation and development of the
economic zones.

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Section 3. All executive orders, rules and regulations and other issuances or parts thereof, which
are inconsistent with this Executive Order, are hereby revoked, amended, or modified accordingly.

Section 4. Any portion or provision of this Executive Order that may be declared unconstitutional
shall not have the effect of nullifying its other portions or provisions, as long as such remaining
portions can still be given effect.

Section 5. This Executive Order shall take effect immediately.

DONE in the City of Manila, this 10th day of September, in the year of Our Lord, Two Thousand
and Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 661-A

AMENDING SECTION 1, PARAGRAPH 7 OF EXECUTIVE ORDER NO. 661 DATED
SEPTEMBER 10, 2007 BY LNCLUDING THE CITY OF BAGO WITH MURCIA IN NEGROS
OCCIDENTAL AS GEOTHERMAL-PRODUCING SITE

WHEREAS, Executive Order (EO) No. 661 dated September 10, 2007 directed the Local
Government Units in areas near or adjacent to geothermal-producing sites in Albay, Laguna, Leyte,
Negros Oriental, Sorsogon and Albay, North Cotabato, and Negros Occidental to develop Economic
Zones;

WHEREAS, Section 1, Paragraph 7 thereof identified Murcia in Negros Occidental as a potential
source of power for an economic zone;

WHEREAS, the actual site of the geothermal plant of the Philippine National Oil Corporation
is located in City of Bago, particularly in Barangay Mailum, while the Office and administration
buildings are partly situated in the Municipality of Murcia in Negros Occidental;

WHEREAS, the inclusion of the City of Bago with Murcia shall reflect the actual site of
geothermal production in Negros Occidental.

NOW, THEREFORE, I, GLORIA MACAPAGAL ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

Section 1. Section 1, Paragraph 7 of Executive Order No. 661, dated September 10, 2007, is
hereby amended as follows:

“Section 1. XXX

XXX

(7) City of Bago and Municipality of Murcia in Negros Occidental”

Section 2. All executive orders, rules and regulations and other issuances or parts thereof, which
are inconsistent with this Executive Order, are hereby revoked, amended, or modified accordingly.
Section 3. This Executive Order shall take effect immediately.

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DONE in the City of Manila, this 22nd day of November, in the year of Our Lord, Two Thousand
and Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANAN PALACE
MANILA

EXECUTIVE ORDER NO. 662

ENHANCING TRANSPARENCY MEASURES UNDER REPUBLIC ACT NO. 9184 AND
CREATING THE PROCUREMENT TRANSPARENCY BOARD

WHEREAS, Republic Act No. 9184 (R.A. 9184) or the Government Procurement Reform Act
and its Implementing Rules and Regulations Pact A (IRR-A) recognize and adopt transparency as a
governing principle in public procurement;

WHEREAS, the projected increase in public sector capital spending under the Medium Term
Philippine Development Plan requires transparency and compliance to the rule of law;

WHEREAS, there is a need for a body to monitor compliance to anti-graft mechanism, to
deter anomalies in the awarding of public sector contracts and to prevent losses due to procurement
irregularities;

WHEREAS, R.A. 9184 and its IRR-A empower the Government Procurement Policy Board
(GPPB) to protect national interest in all matters affecting public procurement and authorizes
its Technical Support Office (GPPB-TSO) to monitor and assist procuring entities improve their
compliance with R.A. 9184;

WHEREAS, the efficiency and effectivity of the GPPB in the performance of its monitoring
function would be further enhanced through close coordination with a procurement transparency
body;

NOW, THEREEORE, I, GLORIA M. ARROYO, President of the Republic of the Philippines, by
virtue of the powers vested in me by law, do hereby order:

ENHANCING TRANSPARENCY

SECTION 1. Procurement Reports. All National Government Agencies (NGAs), Government
Owned and/or Controlled Corporations (GOCCs), Government Financial Institutions (GFIs), State
Universities and Colleges (SUCs), and Local Government Units (LGUs), through their bids and awards
committees are directed to post in the appropriate government website the following procurement
reports as required under R.A. 9184 and its IRR-A:

(a) Annual Procurement Plan;

(b) Procurement Monitoring Report;

(c) List of non-governmental organizations (NGOs), civil society organizations, or professionals’
associations invited as observers; and

(d) Blacklisting orders against suppliers, constructors, and consultants.

The GPPB shall cause to be maintained in the appropriate government website a database of
proposed and concluded public sector contracts involving an amount of PI 00,000,000. 00 and above.

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SECTION 2. Posting in the Philippine Government Electronic Procurement System
(PhilGEPS). All NGAs, GOCCs, GFIs, Sues, and LGUs, through its BACs, are likewise directed to post
all their procurement opportunities, results thereof, and other related information in the PhilGEPS
bulletin board, as required under Section 8.2.1 of the IRR-A of R.R. 9184.

Non-compliance with the foregoing posting obligations shall render the accountable officials
liable for dereliction of duty and conduct grossly prejudicial to the best interest of the service,
without prejudice to other charges, whether administrative, civil or criminal, that may be filed under
appropriate laws and regulations.

THE BOARD

SECTION 3. Procurement Transparency Group. There is hereby created a PROCUREMENT
TRANSPARENCY GROUP, headed by the GPPB and with the following government agencies and
non-government organizations (NGOs) as members:

a. ) Presidential Anti-Graft Commission (PAGC);

b. ) National Economic and Development Authority;

c. ) Department of Justice;

d. ) Department of Budget and Management;

e. ) Department of Interior and Local Government;

f. ) Bishops-Businessmen’s Conference for Human Development;

g. ) Transparency and Accountability Network;

h. ) Volunteers Against Crime and Corruption; and

i. ) Two (2) NGOs involved in training procurement observers and/or procurement reforms.

SECTION 4. Participation of Government Agencies. The heads of the government agencies shall,
by special written authority, designate their duly authorized permanent representatives to the Group.
The non-government organizations are invited to authorize, by special written authority, permanent
representatives to the Group.

FUNCTIONS AND RESPONSIBILITIES

SECTION 5. The Group shall evaluate, comment on, record and monitor contracts entered
into by NGAs, GOCCs, GFIs and SUCs involving an amount of One Hundred Million Pesos
(100,000,000.00) and above.

5.1 For this purpose, pursuant to Procurement Law which requires at least one (1) NGO
Observer in the BAG, there shall be one (1) NGO-member of the Group as specified above sitting as
NGO Observer in the Bids and Awards Committee of NGAs, GOCCs, GFIs and SUCs for contracts
involving an amount of PlOO, 000,000. 00 and above.

5.2. The NGO Observer shall call the attention of agency heads on potential non-compliance
with R.A. 9184 and its IRR-A.

5.3. The NGO Observer shall discuss and addressed issued and concerns gathered from his/her
procurement monitoring activities.

5.4. Based on the findings of the NGO Observer, the group shall make timely recommendations
of remedial actions, improvements in procurement, contract implementation and monitoring processes
to ensure compliance with contractual terms and to safeguard government and public interest.

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5.5. The heads of agencies concerned, the Office of the Executive Secretary and such other
agencies or offices as the Group may determine, shall be furnished copies of its comments and
recommendations .

5.6. The Group shall perform such other functions needed to further enhance its monitoring
capability and accountability.

SECTION 6. All relevant documents and information on contracts requested by the Group shall
be provided by the concerned NGAs, GOCCs, GEIs, SUCs and LGUs without causing any delay in the
bidding process.

SECTION 7. Upon findings of non-compliance with the foregoing directives, the Group shall
recommend to PAGC the imposition of sanctions, implementation of remedial measures and the filing
of criminal, civil and/or administrative charges, and provide information for actions that may be taken
on its recommendations.

APPLICABILITY

SECTION 8. This Order shall not affect not modify existing functions of NGAs, GOCCs, GEIs,
SUCs and LGUs relative to the processing, awarding, approval and review of procurement contracts
except as herein specifically provided.

GUIDELINES AND DEPUTIZATION

SECTION 9. The Group shall issue guidelines for compliance and monitoring activities and
utilize the personnel and facilities or its member agencies or organizations, and may, upon request,
deputize and/or, on its own initiative, contract experts, local communities and government unit and
non-government entities to assist in information gathering and evaluation, and in contract compliance
monitoring. It may, subject to availability of funds, provide financial assistance to such deputized
agencies or entities.

SEPARABILITY

SECTION 10. Any portion of this Executive Order that may be declared unconstitutional shall
not have the effect of nullifying its other portions or provisions, as long as such remaining portions can
still be given effect.

EFFECTIVITY

SECTION 11. This Executive Order shall take effect immediately.

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DONE in the City of Manila, this 20* day of September, in the year of Our Lord, Two Thousand
and Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 662-A

AMENDING EXECUTIVE ORDER NO. 662, SERIES OF 2007 ENTITLED “ENHANCING
TRANSPARENCY MEASURES UNDER REPUBLIC ACT NO. 9184 AND CREATING THE
PROCUREMENT TRANSPARENCY GROUP”

WHEREAS, Executive Order (E.O.)No. 662 entitled Enhancing Transparency Measures under
Republic Act No. 9184 and Creating the Procurement Transparency Group was issued last September
20, 2007;

WHEREAS, there is an urgent need to amend E.O. No. 662 in order to encourage greater
involvement of civil society organizations in the Procurement Transparency Group created thereunder,
as well as to affirm their deep sense of volunteerism;

WHEREAS, positive action, founded on the principles of transparency and full disclosure,
is called for to enlighten the general public on procurement activities perceived to be anomalous or
problematic;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. The last paragraph of Section 1 of E.O. 662, s. 2007 is hereby amended to read as
follows:

“The GPPB shall cause to be maintained in the appropriate government website a
database of proposed and concluded public sector contracts regardless of amount involved.”

SECTION 2. Section 3, 5 and 6 of E.O. No. 662, S. 2007, are likewise hereby amended to read as
follows:

“SECTION 3. Procurement Transparency Group. There is hereby created a
PROCUREMENT TRANSPARENCY GROUP, headed by the GPPB and with the following
agencies and non-government organizations as members:

a) Presidential Anti-Graft Commission;

b) National Economic and Development Authority;

c) Department of Justice;

d) Department of Budget and Management;

e) Department of the Interior and Local Government;

f) Five (5) NGOs/CSOs duly designated by the network of CSOs involved in training
procurement observers and/or procurement reforms.

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“SECTION 5. The Group shall evaluate, comment on, record and monitor procurement activities
of NGAs, GOCCs, GFIs, SUCs and LGUs based on mode of procurement, amount of budget, volume,
susceptibility to problems or anomalies and importance of the project to the developmental objectives
of the country. For this purpose, the Group shall:

5.1 Strategically deploy trained observers to the BACs of NGAs, GOCCs, GFIs, SUCs and LGUs,
which are in charge for the procurement of these identified projects;

5.2 Call the attention of agency heads on potential non-compliance with R.A. 9184 and its
IRR-A;

5.3 Discuss and address issues and concerns gathered from the procurement monitoring activities
of observers;

5.4 Based on its findings, recommend measures to the GPPB that will enhance transparency and
streamline the procurement process;

5.5 Furnish copies of its recommendations and findings to the GPPB, the Office of the President,
the Office of the Executive Secretary, heads of agencies concerned and such other agencies or
offices as the Group may determine;

5.6 Perform such other functions needed to further enhance its monitoring capability and
accountability.”

“SECTION 6. All NGAs, GOCCs, GFIs, SUCs and LGUs, through their BACs, are directed to
cooperate and extend assistance to the deployed observers and the Group.

“In furtherance of the objectives of this Executive Order, all NGAs, GOCCs, GFIs, SUCs and
LGUs are hereby directed to make available on a timely basis to the Group, and the general public, all
procurement-related information, except those which are legally and judicially restricted.”

SECTION 3. All executive issuances or portions thereof which are inconsistent with this
Executive Order are hereby revoked, amended or modified accordingly.

SECTION 4. This Executive Order shall take effect immediately.

Done in the City of Manila, this 15th day of November, in the year of Our Lord, Two Thousand
and Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 662-B

AMENDING SECTION SEVEN OF EXECUTIVE ORDER NO. 662 (SERIES OF 2007) ENTITLED
ENHANCING TRANSPARENCY MEASURES UNDER REPUBLIC ACT NO. 9184 AND
CREATING THE PROCUREMENT TRANSPARENCY BOARD

WHEREAS, Executive Order No. 662 (series of 2007) created the Procurement Transparency
Group to monitor compliance to anti-graft mechanisms, to deter anomalies in the awarding of public
sector contracts and to prevent losses due to procurement irregularities;

WHEREAS, Section 7 of Executive Order No. 662 directs the Procurement Transparency Group
to recommend to the Presidential Anti-Graft Commission the imposition of sanctions, implementation
of remedial measures and the filing of criminal, civil and/or administrative charges and provide
information for actions that may be taken on its recommendations;

WHEREAS, there is a need to simplify the legal process in the determination and implementation
of sanctions and the filing of criminal, civil and/or administrative charges against those that violate the
directives of Republic Act 9184 of the Government Procurement Reform Act and Executive Order 662
(series of 2007);

NOW THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

Section 1. Amendment. Section 7 of Executive Order No. 662 dated September 20, 2007 is hereby
further amended to read as follows:

“Section 7. Upon findings of non-compliance with the foregoing directives, the Group

shall recommend to the Office of the Ombudsman the filing of criminal, civil and/or

administrative charges.”

Section 2. Repealing Clause - All executive issuances inconsistent with this Executive Order are
hereby repealed or amended accordingly.

Section 3. Effectivity. - This Executive Order shall take effect immediately.

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Done in the City of Manila, this 16th day of May, 2008.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 663

IMPLEMENTING THE NATIONAL COMMITMENT FOR "BAKUNA ANG UNA SA
SANGGOL AT INA’’, ATTAINING WORLD HEALTH ORGANIZATION’S GOALS TO
ELIMINATE MEASLES AND NEONATAL TETANUS, ERADICATE POLIO, CONTROL
HEPATITIS B AND OTHER VACCINE-PREVENTABLE DISEASES

WHEREAS, the Philippines has set as one of its goals in the Millenium Development Goals
(MDGs) reduction of child mortality by two-thirds (2/3) by year 2015;

WHEREAS, the government already ratified the Conventions on the Rights of the Child (CRC)
for children to attain the highest possible attainable level of health, survival and protection; and
supported the World Health Assembly resolutions for improving child health and survival;

WHEREAS, the government has committed to the World Health Organization Regional
Committee for the Western Pacific resolutions to eliminate/eradicate measles, neonatal tetanus, polio
and control diphtheria, hepatitis B, pertussis, and childhood tuberculosis by year 2008;

WHEREAS, since the year 2000, the country has already eradicated polio nationwide and has
been sustaining its polio-free status;

WHEREAS, the mass measles vaccination campaign in 2004, otherwise known as the “Ligtas
Tigdas 2004”, demonstrated a 96% unprecedented decline of measles cases and deaths and also led to
institutionalization of safe injection practices, though the use of the auto-disabled needles and syringes
in immunizations, and established an appropriate immunization waste disposal in support of the
“Philippine Clean Air Act 1999” and “Solid Waste Management Act 2003”;

WHEREAS, elimination, eradication control of the childhood vaccine-preventable diseases
requires that at least 95% of our child population be fully immunized annually; that 80% of our
pregnant mothers be vaccinated with tetanus toxoid to protect the newborn from neonatal tetanus and
that all vaccine-preventable disease cases be detected, investigated and reported on a timely basis;

WHEREAS, low an unequally distributed routine immunization coverage in the country causes
about 500,000 infants/children annually to remain unprotected, thus, rendering them susceptible to
vaccine-preventable diseases and thereby threatens the country to outbreaks/ epidemics despite of the
national purchases of a free, potent, and high quality vaccines for all infants/children and mothers;

WHEREAS, another mass measles vaccination campaign will reduce the number of children at
risk of getting measles infections;

WHEREAS, achieving 95% fully immunized children and mothers will require unified
commitments of the national government, local chief executives, health workers, communities and all
sectors of the society;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

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SECTION 1. Declaration of Objectives. - This Executive Order shall have the following objectives:

a) Implement the national commitment for "Bakuna ang Una sa Sanggol at Ina”, Attaining
World Health Organization’s Goals to Eliminate Measles and Neonatal Tetanus, Eradicate
Polio, Control Hepatitis B and other Vaccine-preventable Diseases;

b) Mobilize the national government, its agencies, instrumentalities, local government units, and
other sectors of society in support of this national commitments.

SECTION. 2. Implementing Agencies. -

A. Lead Agency: Department of Health (DOH)

The DOH, as lead agency, shall implement the “Bakuna ang Una sa Sanggol at Ina” to strengthen
the routine reaching of all mothers and infants with safe and effective vaccines; and to identify,
investigate and report vaccine-preventable disease cases.

It shall embark on a mass measles vaccination campaign for all ages 9 months to 48 months old
nationwide.

The DOH shall formulate, disseminate guidelines and procedures on implementing the “Bakuna
ang Una sa Sanggol at Ina” including the introduction of new vaccines based on analysis conducted by
a technical working group; provide technical assistance to Local Government Units (LGUs); conduct
national/regional advocacy and social mobilization activities; provide, allocate and distribute in a
timely manner all the necessary vaccines; and monitor submission of required reports of all LGU health
system activities.

Jointly with Council for the Welfare of Children (CWC), it shall compile, disseminate and publish
semi-annual reports of progress and performance on this immunization program.

B. Department of the Interior and Local Government (DILG)

The DILG shall advocate to all LGUs to achieve and maintain minimum standards of staffing,
financial

support, supplies and communication advocacy to community representatives to achieve this
goal. It shall submit quarterly reports of LGUs compliance to DOH.

C. Department of Education (DepEd)

The DepEd shall ensure the complete vaccination status of all children entering primary school.

It shall further ensure that mothers of all children with incomplete immunization shall be
informed of the immunization program being provided by the government. It shall coordinate with the
local government health units for the complete vaccination of these children. It shall identify and report
any case of suspected vaccine-preventable disease, which has met the standard case definitions, to the
concerned local health units. It shall annually monitor the school entry lists to ensure compliance by all
schools and submit annual reports of schools’ compliance to DOH.

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D. Department of Social Welfare and Development (DSWD)

The DSWD shall ensure the complete vaccination status of all children in day care centers
and pre-schools during the first week of school. It shall further ensure that mothers of all children
with incomplete immunization shall be informed of the immunization program being provided by
government. It shall coordinate with the local government health units for complete vaccination of
these children. It shall identify and report any case of suspected vaccine-preventable disease, which
has met the standard case definitions to the concerned local health units. It shall annually monitor
daycare centers/pre-schools entry lists to ensure compliance of these schools and submit annual reports
of schools’ compliance to DOH.

E. Council for the Welfare for Children (CWC)

The CWC shall coordinate with DepEd, DSWD,DILG and LGUs, to ensure that all incompletely

vaccinated children in schools, day-care centers, pre-schools, and other places, to be fully vaccine-
preventable diseases cases among DOH, LGUs, DepEd and DSWD.

Jointly with DOH, it shall compile, disseminate and publish semi-annual reports of progress and
performance on this immunization program.

E. Local Government Units (LGUs)

The LGUs shall ensure that every pregnant mother and infant are given complete immunization

FREE OF CHARGE. Aside from the weekly health center-based vaccination sessions, it shall
provide systematic outreach services to ensure full immunization of infants/children/mothers and other
intervention that can save children’s/mothers’ lives. They shall organize regular immunization outreach
services and other essential maternal and child health package of services. They shall maintain the
standards set by DOH for staffing, provide adequate needles and syringes; finance traveling expenses
of BHWs to carry-out the follow-up on the immunization services. They shall conduct vigorous social
mobilization activities.

All health workers, including doctors, nurses and midwives, shall fully participate in providing
free immunization, regardless of route-intramuscular, oral, subcutaneous, intradermal. All LGUs shall
submit accomplishment reports of the immunization coverage and activities as follows: provinces and
chartered cities to report quarterly vaccine coverage to regions; municipalities and component cities to
report monthly vaccine coverage to provinces.

The LGUs shall identify and report all suspected vaccine-preventable disease cases that meet the
standard case definition to the next higher level epidemiologic surveillance unit. They shall still submit
weekly “zero reporting” even if there were no identified vaccine-preventable disease cases.

The LGUs shall conduct regular Supplemental Immunization Activities (SIAs) and/or “Child
Health Days”, as determined by, and according to the guidelines of DOH.

G. Civil Society

All members of the civil society, non-government organizations, professional organizations, and
other concerned groups, are encouraged to support this national commitment for “Bakuna ang Una
sa Sanggol at Ina”, through issuances of resolutions, letters, and other mechanisms of information
dissemination and social mobilization, to all members of their organizations.

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Any children vaccinated outside the public health system should be reported to the local
government unit. They shall identify and report any suspected vaccine-preventable disease cases
meeting the standard case definitions to local government health units.

SECTION 3. Funding. - The Department of Health (DOH) shall provide funds for the
procurement of quality vaccines for all eligible population. The Local Government Units (LGUs)
shall provide funds for the procurement and disposal of auto-disabled needles and syringes for
immunizations; travelling expenses for the mobilization of health staffs to reach and immunize all the
infants/children and mothers and for other related activities.

SECTION 4. Repealing Clause. - All other rules, regulations and issuances or parts thereof which
are inconsistent with this Executive Order are hereby repealed or modified accordingly.

SECTION 5. Effectivity. - This Executive Order shall take effect immediately.

DONE in the City of Manila, this 21st day of September, in the year of Our Lord, Two Thousand
and Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

EXECUTIVE ORDER NO. 664

ESTABLISHING EMERGENCY MEASURES TO CONTROL AND ERADICATE THE SPREAD
AND DAMAGE OF BRONTISPA IN THE PHILIPPINE COCONUT INDUSTRY AND
DESIGNATING THE PHILIPPINE COCONUT AUTHORITY AS THE LEAD
AGENCY FOR THE PURPOSE

WHEREAS, coconut is a major source of livelihood in 68 of the 79 provinces of the country;

WHEREAS, the Philippines has earned the niche as the top supplier of coconut products and by
products in the world market contributing an estimated $800 million net foreign earnings to sustain
the economic lives of some 3.5 million coconut farmers and their families;

WHEREAS, the Philippine Coconut Authority is the government agency mandated to oversee the
development of the coconut industry in all its aspects and ensure that such development redound to the
interests of the coconut farmers;

WHEREAS, the Coconut Leaf Beetle (Brontispa Longissima Gestro) an invasive pest from
Southeast Asia has found its way to the Philippines and is now considered as one of the most destructive
pests of the coconut and ornamental palms thereby posing a grave threat to the vital coconut industry
of the country if not properly controlled;

WHEREAS, to ensure the preservation and development of the coconut industry, there is a need
to declare the implementation of emergency measures to control and eradicate the spread of Brontispa
and designate the Philippine Coconut Authority as the lead agency for the purpose;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law do hereby order:

SECTION 1. LEAD AGENCY. The Philippine Coconut Authority shall be the lead agency
in implementing emergency measures to control and eradicate Brontispa in the country. For this
purpose, the PCA shall prescribe the necessary rules and regulations for ifs immediate and effective
implementation.

SECTION 2. RESPONSIBILITIES OF THE PCA. The PCA in order to effectively implement
emergency measures can request the assistance of any local government unit or government agency to
monitor and ensure compliance with the established emergency measures. For this purpose, the PCA
may deputize the Philippine National Police (PNP) and other law enforcement offices to investigate and
apprehend those caught violating the emergency measures including confiscation of coconut seednuts
or seedlings. Specifically:

1. the PCA in coordination with the BPI shall establish such number of quarantine stations
and designate roving inspectors and patrols to (i) monitor and report the extent of damage
of Brontispa, (ii) the transport and movement of coconut planting materials and determine
whether such activities are strictly complying with the pertinent requirements of laws, rules and
regulations, (iii) inspect and inquire into the proper establishment, operations and registration
of coconut seed nurseries and other persons or entities dealing with the transport and sale of
coconut planting materials and to report their findings to the PCA with the Bureau of Plant

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Industry (BPI) which in turn shall coordinate and render assistance to the implementation of
safety measures particularly in the strict implementation of quarantine rules and regulations.

SECTION 3. PROHIBITIONS. Consistent with the guiding policies, no coconut planting
materials be it seednuts or seedlings including any other palm specie shall be allowed to enter by land,
or in any port or by air in the territorial jurisdiction of the country except in the following cases and
only when a permit has been issued therefore:

a. the source of the planting materials has been accredited by the PCA in the case of coconut and
BPI in case of ornamental palms;

b. the transport of seednuts or seedlings should be supported by a Permit to transport issued by
the duly authorized personnel of the PCA stating among others that appropriate preventive
measures such as spraying of appropriate chemicals has been instituted

SECTION 4. AUTHORITY TO TRANSPORT. The PCA shall have the exclusive authority to
grant Permit to Transport for the shipment or movement of coconut planting materials from and to
any points of the country.

SECTION 5. RESPONSIBILITY OE LOCAL GOVERNMENT UNITS. The LGUs shall assist in
the local implementation of the emergency measures by extending appropriate resources for vigorous
information campaigns, issuance of appropriate ordinances, resolutions and other relevant orders as
well as recruitment of volunteers;

SECTION 6. ADMINISTRATIVE PENALTIES. Those found violating the provisions of the
established emergency measures shall be punished by:

a. first offense - confiscation of illegally transported planting materials or the proper treatment
of the pests including the conveyance used at the expense of the shipper/owner of the planting
materials;

b. Second offense - in addition to the confiscation of the planting materials, any violator should
pay in the form of a fine in the amount of Live Hundred pesos (P 500.00) per seednut/seedling
material illegally transported;

c. Third and subsequent offenses - the confiscation of the plants and the payment of fine in the
amount of One Thousand Pesos (P 1,000.00) per planting material illegally transported.

The responsible PCA official found to have permitted, allowed or otherwise tolerated any
violations of the provision of the emergency measures or its implementing rules or have connive or
conspired shall be suspended or dismissed from office in accordance with the disciplinary provisions of
the Administrative Code of 1987.

SECTION 7. SUPPORT EUNDS EOR OPERATIONS. The Department of Agriculture and
the Philippine Coconut Authority shall allocate sufficient funds to support the implementation of
emergency measures to control and eradicate Brontispa including the establishment of quarantine units
and teams of inspectors and patrols organized pursuant to the established emergency measures and
implementation of an effective public information dissemination campaign.

SECTION 8. IMPLEMENTING GUIDELINES. The PCA shall adopt such implementing
guidelines as may be necessary to implement this Executive Order.

SECTION 9. EEEECTIVITY. This executive order shall take effect immediately after publication
in a newspaper of general circulation.

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City of Manila, 25 September 2007

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

EXECUTIVE ORDER NO. 665

CONFERRING CABINET RANK UPON THE CHAIRMAN OF THE
PHILIPPINE MINING DEVELOPMENT CORPORATION

WHEREAS, pursuant to Executive Order No. 636 (s. 2007), the Philippine Mining Development
Corporation (PMDC) was transferred from the Department of Environment and Natural Resources
to the Office of the President in order to closely monitor and oversee the efficient and effective
implementation of the country’s utilization and development of its mineral resources;

WHEREAS, in order to ensure that the objectives of said transfer will be attained, there is a need
to reclassify the Office of the PMDC Chairman as among those positions with a cabinet rank; and

WHEREAS, under Presidential Decree Nos. 1416 and 1772, the President has the continuing
power to reorganize the administrative structure of the National Government, including the authority
to classify positions therein.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by the powers vested in me by the Constitution and by law, do hereby order:

SECTION 1. Ranking,. - The Office of the PMDC Chairman is hereby reclassified as among those
positions with a cabinet rank, unless otherwise directed by the President.

SECTION 2. Repealing Clause. — All executive issuances, rules and regulations or parts
thereof which are inconsistent with this Executive Order are hereby revoked, amended, or modified
accordingly.

SECTION 3. Effectivity. — This Executive Order shall take effect immediately.

City of Manila, 25 September 2007

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) SEC. EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 666

DIRECTING ALL HEADS OF DEPARTMENTS, BUREAUS, OFFICES, AGENCIES
AND INSTRUMENTALITIES OF THE GOVERNMENT TO SUPPORT THE POWER
INFRASTRUCTURE REQUIREMENTS OF CLARK FREEPORT ZONE AND SUPPORT THE
INVESTMENT OF TEXAS INSTRUMENTS IN CLARK TEXAS INSTRUMENT SPECIAL
ECONOMIC ZONE AND BAGUIO CITY ECONOMIC ZONE

WHEREAS, it is a declared national policy to attract foreign investment and trade in the country
to promote economic growth, generate employment, upgrade technology and accelerate national
development;

WHEREAS, on the 10-point agenda of the President includes the transformation of Clark
Freeport Zone (CFZ) into a premier international service and logistic hub in the Asia-Pacific Region;

WHEREAS, to fulfill this vision for CFZ, the Philippine government has intensified its efforts
to provide the necessary road and utility infrastructure to CFZ, among them the Subic-Clark-Tarlac
Expressway, the upgrading and expansion of the North Luzon Expressway, the North Rail and the
Diosdado Macapagal International Airport Complex;

WHEREAS, under Presidential Proclamation No. 1284 dated April 30, 2007, the President had
declared an area within CFZ consisting of 31.7 hectares, more or less, as Clark Texas Instruments
Special Economic Zone (CTISEZ) where Texas Instruments (TI) will locate its expansion facility;

WHEREAS, there is a need for the concerned government entities to fulfill the commitments of
the Philippine government to TI in return for the latter’s decision to locate in the CFZ;

WHEREAS, the commitment of TI to maintain its facility in Baguio City Economic Zone (BCEZ)
and locate its expansion project at (CTISEZ) shall bring in numerous suppliers of TI and this make the
Philippines more attractive to foreign direct investments, thereby generating more locators in CFZ that
will generate employment, boost exports, and enhance the country’s economic growth;

WHEREAS, as a result of TPs committed investment, the forecasted power demand will increase
and it is imperative to put up new power facilities in CFZ to provide reliable and quality electricity to
power sensitive industrial locators, such as TI, and to encourage future locators;

WHEREAS, from the TI committed to locate its expansion facilities in CTISEZ, the Philippine
government counterpart agencies are constrained to work on very tight schedules to complete the
committed power infrastructure facilities;

WHEREAS, to address the projected power requirements of TI for redundant high voltage
transmission system, TRANSCO and CDC agreed to build a more reliable transmission system to meet
the power demand of existing and future locators at CFZ, known as the 230 KV Concepcion-Clark
Power Transmission Project (CCPTP);

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by the Constitution, do hereby order:

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SECTION 1. Constitution of CCPTP. - As approved by NEDA, TRANSCO and CDC shall
undertake the implementation of the CCPTP as follows:

Phase 1

Package A

a. Five (5) km ST/DC & 2 x 16 km SP/SC 230 KV Lines (initially energized at 69 KV);

b. 2 X 6 km 69 KV CP/SC & 1 x 3 69 KV, CP/SC Lines;

c. 2x 69 KV PCBs and other appurtenances at Concepcion Substation; and

d. 69 KV ABS, 2 metering equipment at New Clark Substation and a meeting equipment for TI
back-up line from existing 69 KV Clark Line 2.

Package B

a. Load and substation at TI side consisting of 2 x 50 MVA 69/13.8 KV transformer and other
appurtenances.

Phase 2

a. 2 X 50 MVA 230/69 - 13.8 KV Power Transformer, 6 x 230 KV PCBs, 5 x 69 KV PCBs,
telecommunications equipment and other appurtenances at New Clark Substation; and

b. 2 X 230 KV PCBs and other appurtenance at Concepcion Substation;

In addition, CDC shall implement at Phase 3, which covers the constitution of a 3rd 230 KV line
with corresponding 230/69 KV substation transformers, 69 KV feeders and appurtenances to serve the
power requirement of other future investors in CFZ.

SECTION 2. Responsibilities of TRANSCO and CDC. - The respective responsibilities of
TRANSCO and CDC in the implementation of the CCPTP shall be embodied in a Memorandum of
Agreement, and shall contain, among others, the following;

a. Phase 1 Package A shall be implemented and financed by TRANSCO and 50% of the cost
shall be reimbursed by CDC;

b. Phase 1 Package B shall be implemented by CDC with full technical support and financing by
TRANSCO; 50% of the cost will be reimbursed by CDC and TRANSCO;

c. Phase 2 shall be implemented by TRANSCO and total cost shall be for the account of CDC.

d. Phase 3 shall be implemented by CDC with full technical support from TRANSCO and total
cost shall be for the account of CDC.

SECTION 3. Funding. - TRANSCO shall advance funds for Phases 1 and 2 to meet the tight
schedule committed to TI. CDC shall finance total project cost for Phase 3. DOF and DBM shall identify
other sources of funds to reduce the funding requirements of be borne by TRANSCO and CDC.

SECTION 4. Repayment Scheme. - For advances of TRANSCO to the extent of its ownership,
DBM shall reimburse TRANSCO who will, in turn, transfer ownership of the assets to CDC who will
assume the repayment scheme to DBM. The fund necessary for the repayment of TRANSCO advances

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to CDC shall be the extent of the latter’s repayment capability as determined by DOF and the balance
shall be provided by budgetary support from DBM.

SECTION 5. Generation,Transmission and Distribution Rates to TI. - NPC and TRANSCO
shall provide discounted generation and transmission rates of US$ 0.0491 for year 0 to year 6 and
US$ 0.0600 for year 7 to year 10 contracted with TI in its manufacturing locations (CTISEZ and
BCEZ) within the Philippines in accordance with the policies, rules and regulations of these government
corporations. Should the prevailing industrial retail rates decrease to a level lower than the discounted
rates agreed and granted by NPC and TRANSCO, the rates shall be correspondingly decreased
to match the prevailing rates. Said discounted rates shall be reported to the Energy Regulatory
Commission (ERC). Distribution rates of PEZA at BCEZ shall be waived for the period covered by the
grant of discounted generation and transmission rates by NPC and TRANSCO.

SECTION 6. Concessionary Lease Rates. - CDC shall provide concessionary lease rates to TI for
the duration of the lease agreement between CDC and TI, subject to existing laws, rules and regulations.

SECTION 7. TRANSCO Connection Charges. - Where applicable, TRANSCO may collect
Connection Charges as approved by the ERC from users of the CCPTP facilities.

SECTION 8. Authority to Directly Negotiate for the TI Load-End Substation. - In view of the
urgency to deliver the power infrastructure committed by the Philippine government, and in time
with the scheduled commercial operation of TI by August 2008, CDC as owner-representative and
developer-operator in CTISEZ is authorized to procure the load-end substation for TI through direct
negotiations, subject to existing laws, rules and regulations. TRANSCO shall provide full technical
assistance in the implementation of this particular undertaking.

SECTION 9. Role of Departments, Bureaus, Offices, Agencies, Instrumentalities of the
Covemment. - All heads of departments, bureaus, offices, agencies and instrumentalities of the
government are hereby directed to give full support and assistance to TRANSCO and CDC to expedite the
implementation of the various aspects of the CCPTP. In particular, BCDA and CDC shall grant free access
and free use of Right of Way in the Subic-Clark-Tarlac expressway and inside the CFZ for the CCPTP.

SECTION 10. Repealing Clause. - All issuances, rules and regulations inconsistent herewith are
deemed modified, repealed or revoked accordingly.

SECTION 11. Separability Clause. - If for any reason, any part or provision of this Order shall
be held unconstitutional or declared contrary to law, other parts or provisions hereof which are not
affected shall continue to be in full force and effect.

SECTION 12. Effectivity. - This Executive Order shall take effect immediately.

DONE in the City of Manila, this 25th day of September, in the year of our Lord, Two Thousand
and Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 667

EXTENDING INDEFINITELY THE EFFECTIVITY OF ANY CHARTER OR LEASE CONTRACT
PURSUANT TO PRESIDENTIAL DECREE NO. 760, AS AMENDED

WHEREAS, Presidential Decree No. 760, as amended, allows the temporary registration under
Philippine flag of foreign-owned ships to meet the ever-increasing demand for ships to move water-
borne cargoes and passengers;

WHEREAS, chartering/leasing of ships pursuant to Presidential Decree No. 760, as amended,
has provided growth and development of the Philippine shipping sector as a major importance to
the national economy, thereby realizing a sustainable and reliable water transport industry with safe,
secure, efficient and well-maintained and well-managed ships.

WHEREAS, the existing flnancing schemes for the capital-intensive shipping industry remain
insufficient to encourage Filipino operators to acquire ships, thus necessitating the continuation of the
charter/leasing of ships pursuant to Presidential Decree No. 760, as amended;

WHEREAS, PD No. 760, as amended, provides that the effectivity of any charter or lease contract
entered into pursuant to the Decree shall not be extended unless otherwise extended by the President
of the Republic of the Philippines;

WHEREAS, Executive Order No. 438 issued on 15 September 1997 extended the effectivity of
any charter or lease contract entered into under PD 760, as amended, provided it shall not go beyond
the year 2009; unless otherwise further extended by the President of the Republic of the Philippines;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the power vested in me by law, do hereby order:

Section 1. Effectivity of Any Charter or Lease Contract Pursuant to Presidential Decree No. 760,
as amended. The effectivity of any charter or lease contract entered into under the said Decree is hereby
extended indefinitely, unless otherwise revoked by the President of the Republic of the Philippines.

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DONE in the City of Manila, this 11th day of October, in the year of our Lord, Two Thousand
and Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 668

ADJUSTING THE DIVIDEND RATE OF NAYONG FILIPINO FOUNDATION, INC. (NPFI)
FOR ITS 2003, 2004 AND 2005 NET EARNINGS PURSUANT TO SECTION 5 OF

REPUBLIC ACT NO. 7656

WHEREAS, Section 1 of Republic Act No. 7656 entitled “An Act Requiring Government-
Owned or Controlled Corporations to Declare Dividends Under Certain Conditions to the National
Government, and for other purposes" provides that:

“Section 1. Declaration of Policy. It is hereby declared the policy of the State that
in order for the National Government to realize additional revenues, government-
owned or controlled corporations, without impairing their viability and the
purpose for which they have been established, shall share a substantial amount of
their net earnings to the National Government.”

WHEREAS, Section 5 thereof provides that, “[i]n the interest of national economy and general
welfare, the percentage of annual net earnings that shall be declared by a government-owned or
controlled corporations may be adjusted by the President of the Philippines upon recommendation by
the Secretary of Finance.”-,

WHEREAS, to support the viability and mandate of the Nayong Filipino Foundation, Inc. (NPFI),
the liquidity and medium-term plans and programs of NPFI were considered in the determination of
the reasonable dividend rates on its 2003 - 2005 net earnings;

WHEREAS, pursuant thereto, the Secretary of Finance has recommended the adjustment on the
percentage of 2003 - 2005 net earnings that shall be declared by NPFI as dividend to the National
Government, in the interest of national economy and general welfare.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, do
hereby order:

Section 1. The percentage of net earnings to be declared and remitted by the NPFI as dividends
to the National Government as provided for under Section 3 of Republic Act No. 7656 is authorized
to be adjusted to twenty-five percent (25%), or an estimated total amount of P8.50M for 2003 - 2005.

Section 2. The adjusted dividend rate provided for under Section 1 is only applicable on 2003 -
2005 net earnings of the NPFI.

Section 3. This Executive Order shall take effect immediately.

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Done in the City of Manila, this 11th day of October, in the year of Our Lord, Two Thousand
and Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANAN PALACE
MANILA

EXECUTIVE ORDER NO. 669

GALVANIZING SUPPORT FROM LOCAL LEADERS FOR THE GOVERNMENT AND MEDIUM
TERM PHILIPPINE DEVELOPMENT PLAN GOAL OF FEDERALISM

WHEREAS, it is desirable to galvanize support from local leaders for the government and
Medium Term Philippine Development Plan goal of federalism,

NOW THEREFORE I, GLORIA M. ARROYO, President of the Philippines, by the powers vested
in me by law, do hereby order:

1. There is hereby formed a panel including the Secretary of Interior and Local Government,
the Secretary of Justice, the Director-General of the Presidential Management Staff and the
Director-General of the National Economic and Development Authority, to work with the
leaders of the local government units. Congress allies, and even pro-federalism opposition
leaders to draft a roadmap to federalism by 2012.

2. The measures shall include: Super region planning and oversight bodies with officials and staff
from the Regional Development Councils and national agencies, to draw up programs and
projects up to a stipulated amount, for inclusion in the 2009 budget; legislation to affirm and
expand executive issuances; and eventually charter changes.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Manila, 15 October 2007
Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANAN PALACE
MANILA

EXECUTIVE ORDER NO. 670

AMENDING EXECUTIVE ORDER NO. 531, SERIES 2006 TO SPEED UP THE PROCESSING OF
CASES OF THE PRESIDENTIAL ANTI-GRAFT COMMISSION

WHEREAS, there is a need to demonstrate firm resolve in the anti-corruption campaign;

WHEREAS, by virtue of Executive Order No. 12 dated April 16, 2001 as amended by Executive
Order No. 531 dated May 31, 2006 as well as by Executive Order No. 531-A and 531-B, the
Presidential Anti-Graft Commission (PAGC) was created to assist the President in the campaign against
graft and corruption by investigating or hearing administrative cases against all presidential appointees
in the government and submitting its report or recommendation to the President;

WHEREAS, in order to speed up and streamline the investigation, hearing and resolution of cases
involving presidential appointees, there is a need to give adjudicatory powers to the PAGC;

NOW, THEREFORE, I, GLORIA M. ARROYO, President of the Republic of the Philippines,
by virtue of the powers vested in me by the Constitution and the law, do hereby order the following
amendments to Executive Order No. 531, series of 2006:

SECTION 1. Section 2, paragraph (a) shall heretofore read as follows:

The Commission shall have the power, on complaint or motu propio and concurrent with the
Office of the Ombudsman, to investigate, receive, gather and evaluate evidence, intelligence reports
and information on or hear and decide administrative cases against all Presidential appointees in
the Executive Branch of the government and any of its agencies or instrumentalities occupying the
position of Assistant Regional Director or an equivalent rank, and higher, otherwise classified as Salary
Grade “26” and higher, under the Compensation and Position classification of 1989 (Republic Act No.
6758) including members of the governing board of any instrumentality, regulatory agency, chartered
institution, and directors or officers, appointed or nominated by the President to government-owned
or controlled corporations or corporations where the government has a minority interest, or who
otherwise represent the interests of the government, hereinafter referred to as “covered Presidential
appointees,” as well as other public officers and employees, and private persons, in conspiracy or
connivance with covered Presidential appointees, for acts or omissions constituting violations of any of
the following:

(1) Republic Act No. 3019, as amended, otherwise known as the “Anti-Graft and Corrupt
Practices Act”;

(2) Republic Act No. 1379 on the unlawful acquisitions of property by a public officer or
employee;

(3) Republic Act No. 6713, otherwise known as the “Code of Conduct and Ethical Standards for
Public Officials and Employees”;

(4) And provisions under Title Seven, Book Two of the Revised Penal Code;

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(5) Executive Order No. 292, series of 1987, otherwise known as the “Administrative Code
of 1987”, whenever it defines and imposes administrative sanctions on acts and omissions
constituting violations of the foregoing laws and issuances;

(6) Rules and regulations duly promulgated by competent authority to implement any of the
foregoing laws and issuances; and

(7) Other violations as may be referred to the Commission by the President of the Philippines.

SECTION 2. Section 2, paragraph (c) shall heretofore read as follows:

The Commission shall, on complaint or motu propio, have the authority to administratively
adjudicate on the merits all cases falling within its jurisdiction upon sufficient cause. All decisions of
the Commission shall be rendered en banc and shall state, among others, the factual findings, legal
conclusions and the appropriate administrative penalties imposed.

Such decisions shall become final and executory unless appealed to the President by filing a
Notice of Appeal with the Office of the President within thirty (30) days from receipt thereof by the
respondent in accordance with the procedure set forth in Administrative Order No. 18, series of 1987.

SECTION 3. Section 2, paragraph (d) shall heretofore read as follows:

The Commission shall have the Complaints and Investigation Unit (CIU), to be headed by a
lawyer appointed by the Commission, which shall investigate all complaints/cases against all covered
Presidential appointees. The CIU shall keep a record of all cases filed with the Commission, monitor
their status and disposition, and shall make a quarterly report to the Commission on the progress
thereof. In the conduct of its investigation, the CIU Head shall designate a panel of investigators
preferably composed of three (3) lawyer-members, headed by a Chairman who shall conduct hearings
and render a report of their findings and recommendation to the Commission en banc. In investigating
complaints on disciplinary cases, the Panel of Investigators shall observe closely pertinent provisions
of the Administrative Code of 1987 (EO 292), CSC rules and regulations and other applicable related
laws, and shall submit its findings and recommendations to the a Commission, through the CIU Head,
within fifteen (15) days from the conclusion of the investigation.

SECTION 4. Section 2, paragraph (e) shall heretofore read as follows:

Within fifteen days from receipt of the recommendation by the CIU, the Commission en banc
shall resolve or decide the case submitted before it.

SECTION 5. Section 2, paragraph (f) shall heretofore read as follows:

Upon the filing of a complaint or charge, the commission may issue an Order of Preventive
Suspension against covered Presidential Appointees, when the circumstances of the investigation
warrant the same, as when the charges are punishable with removal from service or when respondent’s
continued stay in office would prejudice the fair determination of the case. The preventive suspension
shall continue until the case is terminated by the Commission but in no case shall exceed a minimum
of ninety (90) days, except when the delay in the disposition of the case is due to the fault, negligence
or petition of the respondent, in which case the period of such delay shall not be counted in computing

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the period of suspension. The Order of Preventive Suspension shall take effect immediately upon
receipt thereof by the respondents unless set aside or modified by the President.

SECTION 6. Section 3 shall heretofore read as follows:

Power to Summon Government Person and Records and to Administer Oaths. - Pursuant to its
power to investigate and adjudicate, the commission shall have the power to administer oaths and
summon or subpoena government personnel and records.

SECTION 7. Section 4 shall heretofore read as follows:

Effect of Non-Compliance with Summons. - Any unreasonable delay or refusal of a public
officer or employee in the Executive Branch to comply with the summons or subpoenas issued by
the Commission shall constitute a ground for administrative disciplinary action which shall be heard
and adjudicated by the Commission separately from the investigation or administrative case relative to
which the summons or subpoenas were issued. The Commission en banc may, for this purpose, also
file the appropriate criminal charge or complaint against erring public officer or employee before the
appropriate bodies, courts or tribunals.

SECTION 8. Section 6 shall heretofore read as follows:

Disclosures. - The commission and its personnel shall not disclose or make public any record
or information in connection with any investigation pending its decision thereon and when such
disclosures would deprive the respondent of his/her right to fair and impartial disposition of the case.
Only the chairperson may disclose any information to the public provided that any such disclosure
shall be balanced, fair and accurate.

SECTION 9. Section 7 shall heretofore read as follows:

Transitory Provision. - Upon effectivity of this Executive Order, all cases involving Presidential
Appointee or otherwise within the jurisdiction of the commission which are pending before the Office
of the President shall be immediately remanded to the Commission for appropriate disposition by the
Commission in accordance with the provisions thereof.

SECTION 10. Section 2, paragraphs (e), (f), (g), (h), (i), (j), (k), shall heretofore be renumbered as
paragraphs (g), (h), (i), (j), (k), (1) and (m), respectively.

Sections 7, 8, and 9, shall heretofore be renumbered as Sections 9, 10 and 11, respectively.

SECTION 12. Repealing Clause. - All orders, rules and regulations and issuances or parts thereof
inconsistent with this Executive Order are hereby repealed, amended or modified, accordingly.

SECTION 13. - Effectivity. - This Executive Order shall take effect immediately after publication
in a newspaper of general circulation.

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Done in the City of Manila this 22nd of October, 2007.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) IGNACIO R. BUNYE
Acting Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 670-A

AMENDING EXECUTIVE ORDER NO. 670, SERIES OF 2007 TO DELINEATE THE
ADJUDICATORY POWERS OF THE PRESIDENTIAL ANTI-GRAFT COMMISSION

WHEREAS, to fairly expedite the disposition and resolution of cases under investigation by the
Presidential Anti-Graft Commission, there is a need to delineate the adjudicatory powers in it vested
under Executive Order No. 670, Series of 2007.

NOW, THEREFORE, I, GLORIA MACAPAGAL- ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by the Constitution and the law, do hereby order the
following amendment to Executive Order No. 670, Series of 2007:

SECTION 1. Section 2, paragraph (c) shall heretofore read as follows:

The Commission, in behalf of the Office of the President, shall have the authority to
conduct proceedings on all cases falling within its jurisdiction upon sufficient cause. All
decisions of the Commission shall be rendered en banc and shall state, among others, the
factual findings, legal conclusions and the appropriate administrative penalties imposed.

Such decisions shall be submitted to the President for appropriate action.

SECTION 2. All orders, rules and regulations and issuances or parts thereof inconsistent with
this Executive Order are hereby repealed, amended or modified accordingly.

SECTION 3. This Executive Order shall take effect immediately after publication in a newspaper
of general circulation.

DONE in the City of Manila, Philippines, this 23rd day of April, 2008.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

EXECUTIVE ORDER NO. 671

DESIGNATING APPROPRIATE GOVERNMENT AGENCIES TO BE THE ACCREDITING
ENTITIES THAT WILL CERTIFY AND ACCREDIT CHARITABLE ORGANIZATION AS DONEE-
INSTITUTIONS RELATIVE TO THE DEDUCTIBILITY OF CONTRIBUTIONS OR GIFTS
RECEIVED BY THEM, IN RELATION TO SECTION 34 OF THE TAX REFORM ACT OF 1997

WHEREAS, there is a need to strengthen the regulatory functions of government agencies over
non-stock non-profit corporations, associations and non-government organizations which fall under its
respective mandate;

WHEREAS, there is a need to rationalize fiscal incentives given to individuals, corporations and
organizations as part of the government’s fiscal reform;

WHEREAS, Section 34 (H) of the Tax Reform Act of 1997 provides for the deductibility of
contributions or gifts made to donee institutions;

WHEREAS, the Secretary of Finance is required to promulgate and publish the necessary Rules
and Regulations for the effective implementation of the Act;

WHEREAS, on December 8, 1998, the Department of Finance promulgated Revenue Regulation
13-98 implementing Section 34 (H) of the Act;

WHEREAS, the Department of Finance entered into a Memorandum of Agreement designating
the Philippine Council for NGO Certification, Inc. a non-stock, non-profit corporation as Accrediting
Entity for donee institutions;

WHEREAS, the designation of function to Philippine Council for NGO Certification (PCNC),
which is a private body, may amount to an undue delegation of power;

WHEREAS, the President shall have control over all executive departments, bureaus and offices
and shall ensure that the laws be faithfully executed;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by the Constitution do hereby order and direct the
following:

Section 1. Accrediting Entity - The following Departments are hereby designated Accrediting
Entities to determine the qualification of non-stock, non-profit corporations, non-governmental
organizations, associations, and foundations for accreditation as qualified donee-institutions to wit:

a. Department of Social Welfare and Development for charitable and/or social welfare
organizations, foundations and associations including but not limited to those engaged in
youth, child, women, family, disabled persons, older persons welfare and development;

b. Department of Science and Technology - for organizations, associations and foundation
primarily engaged in research and other Scientific activities

c. Philippine Sports Commission - for organizations, foundations and associations primarily
engaged in sports development

d. National Council for Culture and Arts- for organizations, foundations and associations
primarily engaged in cultural activities

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e. Commission on Higher Education - for organizations, foundations and association primarily
engaged in educational activities

Section 2. The Accrediting Entities shall comply with the Standards and Guidelines set by the
Department of Einance relative to accreditation of non-stock, non-profit corporations/NGOs as
provided for in Revenue Regulation No. 13-98.

Section 3. Repeal - All executive and administrative issuances inconsistent with the provisions of
the Order are hereby deemed repealed, amended or modified accordingly.

Section 4. Separability - If any portion of this Order is declared unconstitutional, the other
provisions of this Order shall not be affected by this Order.

Section 5. Effectivity - This order shall take effect after fifteen (15) days from publication in a
newspaper of general circulation.

Done on the City of Manila, this 22nd day of October, in the year of Our Lord, Two Thousand
and Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) IGNACIO R. BUNYE
Acting Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

EXECUTIVE ORDER NO. 672

DEFINING AND CLARIFYING THE RESPONSIBILITIES OF THE DEPARTMENT OF
ENVIRONMENT AND NATURAL RESOURCES (DENR) AND PHILIPPINE RECLAMATION
AUTHORITY (PRA) IN THE APPROVAL AND IMPLEMENTATION OF RECLAMATION

PROJECTS NATIONWIDE

WHEREAS, under Presidential Decree No. 3-A of January 11, 1973, the reclamation of areas
under water, whether foreshore or inland, shall be limited to the National Government or any person
authorized by it under a proper contract, notwithstanding the provisions of any law to the contrary;

WHEREAS, on February 4, 1977, the Public Estates Authority (PEA) was created to reclaim land,
including foreshore and submerged areas, by dredging, filling or other means, to acquire reclaimed
land;

WHEREAS, on February 14, 1979, Executive Order No. 525 was issued directing the PEA to be
primarily responsible for integrating, directing and coordinating all reclamation projects for and on
behalf of the National Government; that all reclamation projects shall be approved by the President
upon the recommendation of the PEA, and shall be undertaken by the PEA or through a proper
contract executed by it with any person or entity; provided that reclamation projects of any National
Government agency or entity authorized under its Charter shall be undertaken in consultation with the
PEA upon approval of the President;

WHEREAS, the PEA has been renamed as the Philippine Reclamation Authority (PRA) by virtue
of Executive Order No. 380-A dated April 3, 2006;

WHEREAS, the above-mentioned power of the President to approve all reclamation projects has
been delegated to PRA (PEA) under Executive Order No. 543 dated June 24, 2006;

WHEREAS, pursuant to the above-mentioned mandate of PRA under existing laws and
Executive Order No. 543, the PRA (PEA) issued on January 31, 2007, Administrative Order No. 2007-
2 providing the rules and regulations in the approval and implementation of reclamation projects;

WHEREAS, pursuant to Title XIV, Sec. 2 of the 1987 Administrative Code, the Department of
Environment and Natural Resources (DENR) shall, subject to law and higher authority, be in charge of
carrying out the State’s constitutional mandate to control and supervise the exploration, development,
utilization and conservation of the country’s natural resources;

WHEREAS, under Sec. 4, Chapter I, Title XIV of the 1987 Administrative Code, one of the
powers and functions of DENR is to exercise exclusive jurisdiction on the management and disposition
of all lands of the public domain and serve as the sole agency responsible for classification, sub-
classification, surveying and titling of lands in consultation with appropriate agencies;

WHEREAS, on July 31, 2007, the DENR issued DENR Administrative Order (AO) No. 2007-20
providing the Rules and Regulations Governing the Issuance of Permit Over Reclamation Projects And
Special Patents Over Reclaimed Lands;

WHEREAS, the said DENR AO No. 2007-20 caused confusion among the applicants for the
reclamation projects as it conveys the impression that the DENR is the regulatory agency for the
reclamation projects since it requires the reclamation proponents to secure permit to reclaim from
DENR which permit shall only be valid for a period of one ( 1 ) year;

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WHEREAS, to eliminate any confusion and to avoid conflict between the PRA (PEA) and DENR
and among the stakeholders and target clientele and to promote efficiency and effectiveness in the
approval and implementation of reclamation projects under the concept of sustainable development,
there is a need to delineate and define the roles and responsibilities of PRA (PEA) and DENR with
respect to reclamation projects nationwide;

WHEREAS, the President of the Philippines, under the 1987 Administrative Code is the Chief
Executive of the National Government vested with the power and authority to implement changes
within the executive branch to realize any national goals and objectives, policies and regulations;

NOW, THEREEORE, I, GLORIA MACAPAGAL ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order as follows:

Section 1. In accordance with Presidential Decree No. 1084 (PD 1084) as amended by Executive
Order No. 525 (EO 525) dated February 14, 1979 and Executive Order No. 543 (EO 543) of June 24,
2006, it is hereby reiterated that the PRA (PEA) shall approve all reclamation projects on behalf of the
President subject to compliance with existing laws and rules.

Section 2. Prior to approval of any reclamation project, the PRA (PEA) is hereby directed to
coordinate and secure from DENR a permit authorizing/clearing a particular area to be the site of the
proposed reclamation project, otherwise known as the area permit or site clearance.

Section 3. Prior to the implementation of the duly approved reclamation projects, the
Environmental Compliance Certificate (EGG) shall be secured from DENR and that no reclamation
works shall commence without the required EGG.

Section 4. The PRA shall closely monitor and supervise the implementation of the reclamation
projects while the DENR shall monitor and enforce strict compliance with the terms and conditions of
EGG for the reclamation project.

Section 5. Upon completion of the reclamation project, the PRA and DENR shall undertake the
survey of the completed reclaimed land in accordance with DENR rules and regulations and thereafter
upon request and/or clearance from PRA (PEA), the DENR shall indorse to the President of the
Philippines, the issuance of proclamation declaring some portions of reclaimed land to be alienable or
disposable and retaining some portions thereof for public use and public service.

Section 6. Immediately after issuance of the proclamation, the DENR and/or Land Registration
Authority (LRA) shall issue Special Patent and subsequently Original Certificate of Title. The
portions of reclaimed land to be devoted to public use and public service shall be titled in the name
of the Republic of the Philippines while reclaimed land which has been proclaimed as alienable and
disposable shall be issued title originally in the name of the PRA (PEA) which is hereby authorized
to transfer titles for a consideration or otherwise, to qualified persons, natural or juridical, who may
own reclaimed lands pursuant to the 1987 Constitution and subject to all existing laws, rules and
regulations.

Section 7. All executive orders, rules and regulations and other issuances or parts thereof, which
are inconsistent with this Executive Order, are hereby revoked, amended or modified accordingly.

Section 8. This Executive Order shall take effect immediately.

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DONE in the City of Manila, this 19th day of October, in the year of our Lord, Two Thousand
and Seven.

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

(Sgd.) GLORIA MACAPAGAL-ARROYO

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

EXECUTIVE ORDER NO. 673

AMENDING EXECUTIVE ORDER NO. 340, SERIES OF 2004, TO PROVIDE FOR THE
COMPENSATION OF THE CHAIRMAN OF THE SUBIC BAY
METROPOLITAN AUTHORITY (SBMA)

WHEREAS, Executive Order No. 340 series of 2004, reorganized the Board of Directors of
the Subic Bay Metropolitan Authority (SBMA) and defined the powers, functions and duties of the
Chairman of the Board of Directors and the SBMA Administrator;

WHEREAS, in view of the multifarious requirements, functions, duties and responsibilities of the
of the Administrator of the SBMA, Executive Order No. 340, series of 2004, reorganized the SBMA
Board and provided for the position of Chairman of the SBMA Board separate and distinct from that
of the Administrator;

WHEREAS, while Executive Order No. 340 series of 2004 defined and provided for the position
of the Chairman of the SBMA Board separate and distinct from that of the Administrator, the
aforementioned Order did not provide for the compensation of the Chairman;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by the Constitution and existing laws, do hereby
order:

SECTION 1-Section 1 of Executive Order, series of 2004 shall heretofore read as follows:

“The Chairman of the Board of Directors of the Subic Bay Metropolitan Authority [SBMA] shall
be appointed by the President while the SBMA Administrator shall serve as ex-officio Vice-Chairman
of the SBMA Board.

The compensation of the SBMA Chairman as head of agency shall be the same as that of the
Administrator.”

SECTION 2-This Executive Order shall take effect immediately.

City of Manila, 30 October 2007

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 674

CREATING THE PHILIPPINE FILM EXPORT SERVICES OFFICE

WHEREAS, it is government policy to maximize the country’s comparative advantage as a
location site for international movie and television making to generate income, promote tourism, and
enhance the image of the country abroad;

WHEREAS, enhancing linkages and collaboration with foreign film producers and film bodies
will also facilitate the promotion of locally produced films in global festivals and markets; and

WHEREAS, to encourage foreign movie and television makers to produce their films in the
country, it is expedient to integrate, simplify and streamline the requirements for foreign producers
interested in doing location shooting in the country.

NOW THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Creation of a Philippine Film Export Services Office. There is hereby created
a Philippine Film Export Services Office (hereinafter referred to as the “Office”), under the Film
Development Council of the Philippines (hereinafter referred to as the “FDCP”). The Office shall be
under the administrative and technical supervision of the FDCP. It shall be composed of the Executive
Director of the Office, and representatives from the following agencies:

1. Department of Tourism

2. Department of Trade and Industry

3. Department of Interior and Local Government

4. Department of National Defense

5. Bureau of Customs

6. Bureau of Internal Revenue

7. Bureau of Immigration

8. Cinema Evaluation Board

9. Film Academy of the Philippines

10. Private sector representatives, one each from the movie and television industries

Section 2. Functions. The Philippine Film Export Services Office shall facilitate the
institutionalization of a One-Stop-Shop System for Foreign Film/Television Production. It shall also
undertake the following:

1. Facilitate the promotion and marketing of the Philippines as location site for the production
of international films and television programs;

2. Formulate and recommend an incentive package for foreign film/television companies
interested in shooting films/television programs in the country;

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3. Assist foreign film companies in processing pertinent documents and various requirements
relative to the production of international films/television programs in the country;

4. Coordinate with various government agencies in assisting the entry and exit of foreign film/
television producers, artists and production crew;

5. Provide direct link between foreign production companies, producers, filmmakers and artists
with local production manpower services, local artists, bit players and technical crew and
facilities;

6. Utilize the services of tourism attaches abroad, through the Department of Tourism, in the
promotion and marketing of Philippine locations sites/resources and local film production
manpower;

7. Perform such other functions as may be authorized by the FDCP Chairperson.

Section 3. Duties and Responsibilities of the Executive Director. The Executive Director of the
Office shall be the head of the Secretariat. He shall exercise the following duties and responsibilities:

1. Direct and supervise the operations of the Office;

2. Recommend the appointment of the administrative and subordinate personnel; and

3. Facilitate the preparation of the annual and supplemental budget of the Office.

Section 4. Annual Report. The Office shall, within three months after the end of every fiscal year,
submit its annual report to the President, through the FDCP.

Section 5. Initial Fund. To carry out the provisions of this Executive Order, the release of the
initial sum not exceeding TEN MILLION PESOS (10,000,000.00) is hereby authorized chargeable
against the FDCP Special Fund accrued from amusement tax rewards, under Republic Act No. 9167.
Thereafter, the budget of the Office shall be integrated in the annual budget of the FDCP.

Section 6. Effectivity. This Executive Order shall take effect immediately.

DONE in the City of Manila this 30th day of October, in the year of Our Lord, 2007.

(Sgd.) GLORIA MACAPAGAL-ARROYO

Presdent of the Republic of the Philippines

By the President:

(Sgd.) EDUARDO R. ERMITA

Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601
Malacanang Records Office.

700]. Manila:

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 674-A

AMENDING EXECUTIVE ORDER NO. 674 CREATING THE PHILIPPINE
FILM EXPORT SERVICES OFFICES

WHEREAS, the Philippine Film Export Services Office (PFESO) is mandated to maximize the
country’s comparative advantage as a location site for international movie and television program
productions to generate income, promote tourism, and enhance the image of the country abroad;

WHEREAS, the assistance of the Department of Foreign Affairs (DFA) is vital to the operation of
the PFESO;

WHEREAS, both the DFA and the PFESO share the objective of presenting the best image of the
Philippines to the world;

WHEREAS, the processing of each request of a foreign motion picture or television company
that wishes to film in the Philippines begins with an application for the necessary visa from the nearest
Philippine Embassy or Consulate of the DFA;

WHEREAS, the success of the PFESO will lead to better relations with the different countries
whose production companies will come to the Philippines;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Executive Order No. 674 dated October 30, 2007, is hereby amended to include
the Department of Foreign Affairs as one of the members of the Philippine Film Export Services Office.

SECTION 2. This Executive Order shall take effect immediately.

DONE in the City of Manila, this 15th day of June, in the year of Our Lord, Two Thousand and
Nine.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2009). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 675

AMENDING EXECUTIVE ORDER NO. 97-A DATED JUNE 19, 1993 BY EXTENDING THE
SECURED AREA ENJOYING THE TAX AND DUTY FREE PRIVILEGES TO THE SUBIC SPECIAL
ECONOMIC AND FREE PORT ZONE AS DEFINED BY PROCLAMATION
NO. 532 DATED FEBRUARY 1, 1995

WHEREAS, Republic Act (RA) No. 7227, otherwise known as the Bases Conversion and
Development Act of 1992, accelerated the conversion of military reservations into other productive
uses and, created, the Bases and Conversion and Development Authority (BCDA), among others;

WHEREAS, Section 12 of RA 7227 created the Special Economic and Free-port Zone consisting
of the City of Olongapo and the Municipality of Subic, Province of Zambales, the lands occupied by
the Subic Naval Base and its contiguous extensions as embraced, covered, and defined by the 1947
Military Bases Agreement between the Philippines and the United States of America as amended, and
within the Municipalities of Morong and Hermosa, Province of Bataan, referred to as the Subic Special
Economic Zone (SSEZ), subject to the concurrence by resolution of the Sangguniang Panglungsod
of the City of Olongapo and the Sangguniang Bayan of the Municipalities of Subic, Morong and
Hermosa;

WHEREAS, Section 12 of RA 7227 further provides that each local government unit shall submit,
within thirty (30) days after the approval thereof, their resolution of concurrence to join the SSEZ to
the Office of the President, who shall issue a Proclamation defining its metes and bounds;

WHEREAS, Subsection (b). Section 12 of RA 7227 provides as a policy that the SSEZ shall be
operated and managed as a separate customs territory ensuring free flow or movement of goods and
capital within, into and exported out of the SSEZ, as well as provide incentives such as tax and duty-
free importations of raw materials, capital and equipment, subject to the condition that exportation or
removal of goods from the territory of the SSEZ to the other parts of the Philippine territory shall be
subject to customs duties and taxes under the Customs and Tariff Code and other relevant tax laws of
the Philippines;

WHEREAS, Executive Order (EO) No. 97-A dated June 19, 1993 limited the coverage of the
completely tax and duty-free area in the Subic Special Economic and Free Port Zone (SSEFPZ) within
the “Secured Area” only, consisting of the presently fenced-in former Subic Naval Base;

WHEREAS, Proclamation No. 532 dated February 1, 1995 defined the metes and bounds of the
SSEFPZ, the total land and water area of which consists of 67,452 hectares, more or less;

WHEREAS, the “Secured Area” of the SSEFPZ has grown as it was so envisioned, becoming the
hub and principal place of business of various local and foreign investors;

WHEREAS, there has been a shortage of areas for lease to investors who intend to avail of the
tax and duty-free incentives under the act as the grant of these tax and duty-free incentives has been
confined only within the “Secured Area” by EO 97-A, Series of 1993;

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WHEREAS, extending the area of coverage of the tax and duty-free privileges beyond the
“Secured Area” but within the SSEFPZ will entice more local and foreign investors to set up businesses
within the SSEFPZ.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

Section 1. Section 1 of Executive Order No. 97-A dated 19 June 1993 is hereby amended to read
as follows:

“Section 1. The following guidelines shall govern the tax and duty-free privilege within the
Subic Special Economic and Freeport Zone (SSEFPZ):

1.1 The tax and duty-free privilege within the SSEFPZ shall apply within the current
Secured Area consisting of the presently fenced-in former Subic Naval Base and such
other areas, that may be identified, fenced, secured or declared as additional Secured
Areas by the Subic Bay Metropolitan Authority (SBMA) within the SSEFPZ as defined
under Proclamation No. 532 dated February 1, 1995. The SBMA and the Bureau
of Customs (BOC) shall jointly formulate and implement measures to prevent the
smuggling of goods from the Secured Areals into the Customs Territory.

Business enterprises and individuals (Filipinos and foreigners) residing within the secured
Areals and in the other areas under Clause 1.1 hereof, are free to import raw materials,
capital goods, equipment, and consumer items tax and duty-free. Consumption items,
however, must be consumed within the secured Areals and, in the areas defined in Clause

1.1 hereof. Removal of raw materials, capital goods, equipment and consumer items out
of the secured Areals for sale to non-SSEFPZ registered enterprises shall be subject to
the usual taxes and duties, except as provided under Clause 1 .4 hereof.

1 .2 Residents of the SSEFPZ living outside the Secured Areals can enter the Secured Areals
and consume any quantity of consumption items in hotels and restaurants within the
Secured Areals.

1 .3 Filipinos not residing within the SSEFPZ can enter the secured Areals and consume any
quantity of consumption items in hotels and restaurants within the Secured Areals.

1.4 Foreign tourists, balikbayans and returning residents (from abroad) passing through the
Secured Areals shall be entitled to the same prevailing tax and duty-free privileges they
presently enjoy.

1.5 The sale of tax and duty-free consumer items in the Secured Areals shall only be allowed
in duly authorized duty-free shops. Duty-free shops shall be the subject to the joint
regulation of the BOC and the SBMA to insure proper accounting of imports and sales.

1.6 A control system shall be set up by duty-free shop operators at their own expense. This
system shall be approved by the SBMA and Customs authorities before any duty-free
outlet is permitted to operate.

1.7 The SBMA shall install a computerized identification system to insure compliance with
the guidelines governing the SSEFPZ, particularly the secured areals and the areas under
Clause 1.1 hereof. Customs authorities together with SBMA personnel, shall man the
entry ! exit gates of the Secured Areals and such other areas under Clause 1.1 hereof.”

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Section 2. The BOC and the SBMA shall jointly promulgate the rules and regulations to
implement this Executive Order.

Section 3. All executive orders, rules and regulations and other issuances or parts thereof, which
are inconsistent with this Executive Order, are hereby revoked, amended, or modified accordingly.

Section 4. This Executive Order shall take effect fifteen (15) days after its publication in a national
newspaper of general circulation.

DONE in the City of Manila, this 5 th day of November, in the year of Our Lord, Two Thousand
and Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

EXECUTIVE ORDER NO. 676

TRANSFERRING THE NATIONAL COUNCIL FOR THE WELFARE OF DISABLED PERSONS
(NCWDP) FROM THE DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT (DSWD)

TO THE OFFICE OF THE PRESIDENT

WHEREAS, the National Council for the Welfare of Disabled Persons (NCWDP) is the national
government agency mandated to formulate policies and coordinate the activities of all agencies,
whether public or private, concerning disability issues and concerns. As such, the NCWDP is the lead
agency tasked to steer the course of program development for persons with disabilities and the delivery
of services to the sector;

WHEREAS, through the recommendation of Philippine non-government organizations (NGOs)
concerned with intellectual disabilities, the Office of the President recognizes that there is a need to
further strengthen the government programs for the welfare of disabled Filipinos;

WHEREAS, in order to closely monitor and oversee the efficient and effective implementation of
the Government’s commitment in the special programs for persons with intellectual disabilities, there is
a need to transfer the NCWDP from the DSWD to the Office of the President;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law and the Constitution, do hereby order:

SECTION 1. Transfer. - The National Council for the Welfare of Disabled Persons (NCWDP)
is hereby transferred from the Department of Social Welfare and Development to the Office of the
President.

SECTION 2. Appointments. A representative from the private sector shall be designated as chair
of the NCWDP.

SECTION 3. Oversight. The Secretary of Social Welfare and Development shall continue to
oversee the NCWDP in behalf of the President of the Philippines.

SECTION 4. Repealing Clause. - All executive issuances, rules and regulations or parts
thereof which are inconsistent with this Executive Order are hereby revoked, amended, or modified
accordingly.

SECTION 5. Effectivity. - This Executive Order shall take effect immediately.

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City of Manila, October 25, 2007

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) HON. EDUARDO R. ERMITA

Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 677

MODIFYING THE RATES OF DUTY ON CERTAIN IMPORTED ARTICLES AS PROVIDED
UNDER THE TARIFF AND CUSTOMS CODE OF 1978, AS AMENDED, IN ORDER TO
IMPLEMENT THE PREFERENTIAL TARIFF RATES ON CERTAIN PRODUCTS UNDER THE
ASEAN INDUSTRIAL COOPERATION (AICO) SCHEME, IN FAVOR OF TOYOTA MOTOR
PHILIPPINES CORPORATION; TOYOTA AUTOPARTS PHILIPPINES, INC.

(COE NOS. TOYOTA /2006/35 AND TOYOTA/2006/36)

WHEREAS, the Philippines is a Contracting Party to the Basic Agreement on the ASEAN
Industrial Cooperation Scheme (AICO) signed in Singapore on 27 April 1996;

WHEREAS, the Philippines is a signatory to the Protocol amending the Basic Agreement on the
AICO Scheme signed in Singapore on 21 April 2004;

WHEREAS, the Philippines is a participating country in the approved AICO Arrangements of
Toyota Motor Philippines Corporation; Toyota Autoparts Philippines, Inc along with Indonesia;

WHEREAS, under the Toyota AICO Certificate of Eligibility No. Toyota/2006/35, the Philippines
(Toyota Motor Philippines Corporation) will import from Indonesia (PT. Toyota Motor Manufacturing
Indonesia) certain original equipment manufacture (OEM) automotive parts/components for Camry
and Corolla. In exchange, Indonesia (PT. Toyota Motor Manufacturing Indonesia) will import from
the Philippines complementary parts/ components for the OEM of Kijang Innova;

WHEREAS, under the Toyota AICO Certificate of Eligibility No. Toyota/2006/36, the Philippines
(Toyota Motor Philippines Corporation; Toyota Autoparts Philippines, Inc.) will import from Indonesia
(PT. Toyota Motor Manufacturing Indonesia) certain original equipment manufacture (OEM)
automotive parts/ components for Innova Multi-Purpose Vehicle (Innova). In exchange, Indonesia
(PT. Toyota Motor Manufacturing Indonesia) will import from the Philippines complementary parts/
components for the OEM of Kijiang Innova;

WHEREAS, AICO Certificate of Eligibility No. Toyota/2006/35 and Toyota/2006/36 were issued
on 01 December 2006 and were later amended on 08 January 2007 and 03 January 2007 respectively,
in favor of the participating companies in the Toyota AICO arrangements;

WHEREAS, in consonance with Articles 5 and 7 of the Basic Agreement of the AICO Scheme, as
amended, participating companies in the approved Toyota AICO Arrangements shall qualify for 0%
preferential tariff rates to be extended by Indonesia and the Philippines as participating countries.

NOW, THEREFORE, I, GLORIA MACAPAGAL ARROYO, President of the Philippines,
pursuant to the powers vested in me under Section 402 of the Tariff and Customs Code of 1978, as
amended, do hereby order:

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SECTION 2. The AICO rate provided in Annex “A” shall be accorded to the AICO entity in
Indonesia (PT. Toyota Motor Manufacturing Indonesia) upon the effectivity of this Executive Order;

SECTION 3. Upon the effectivity of this Executive Order, the articles specifically listed in
the aforesaid Annex “A” which are entered or withdrawn from warehouses in the Philippines for
consumption shall pay the applicable AICO preferential tariff rates specified under Section 1 hereof,
subject to qualification under the Rules of Origin for the CEPT, as evidenced by the Certificate of
Origin-Form “D”.

SECTION 5. This Executive Order shall take effect immediately upon publication in a national
newspaper of general circulation.

DONE in the City of Manila, this 31st day of October, in the year of Our Lord, Two Thousand
and Seven.

(Sgd.) GLORIA MACAPAGAL ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Reference: Annex A

Source: Malacahang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacahang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 678

MODIFYING THE RATES OF IMPORT DUTY ON CERTAIN ARTICLES
UNDER SECTION 104 OF THE TARIFF AND CUSTOMS CODE OF 1978
(PRESIDENTIAL DECREE NO. 1464), AS AMENDED

WHEREAS, it is the policy of the government to promote the development of sustainable,
prosperous and internationally competitive domestic industries;

WHEREAS, certain manufacturing industries would gain greater competitiveness from a
reduction in the cost of their imported inputs;

WHEREAS, Section 401 of the Tariff and Customs Code of 1978 (Presidential Decree No. 1464),
as amended, empowers the President of the Republic of the Philippines to increase, reduce, or remove
existing rates of import duty, as well as to modify the form of duty and the tariff nomenclature under
Section 104 of said Code;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. The articles specifically listed in Annex “A” hereof, as classified under Section 104
of the Tariff and Customs Code of 1978, as amended, shall be subject to the Most-Favoured-Nation
(MEN) rate of import duty in accordance with the schedule indicated opposite each article.

SECTION 2. The nomenclature and rates of import duty on tariff headings not enumerated and
those listed but represented by the symbol “x x x” shall remain in force and in effect.

SECTION 3. Upon the effectivity of this Executive Order, the articles specifically listed in Annex
“A” which are entered and withdrawn from warehouses in the Philippines for consumption shall be
levied the MEN rates of duty therein prescribed.

SECTION 5. This Executive Order shall take effect thirty (30) days after its complete publication
in a national newspaper of general circulation in the Philippines.

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DONE in the City of Manila, this 31st day of October, in the year of Our Lord, Two Thousand
and Seven.

(Sgd.) GLORIA MACAPAGAL ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Reference: Annex “A”

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 679

WHEREAS, the Philippines is a Contracting Party to the Basic Agreement on the ASEAN
Industrial Cooperation Scheme (AICO) signed in Singapore on 27 April 1996;

WHEREAS, the Philippines is a signatory to the Protocol amending the Basic Agreement on the
AICO Scheme signed in Singapore on 21 April 2004;

WHEREAS, the Philippines is a participating country in the approved AICO Arrangements of
Honda Cars Philippines, Inc. along with Thailand;

WHEREAS, under the Honda AICO Certificate of Eligibility No. Honda/2007/48, the Philippines
(Honda Cars Philippines, Inc.) will import from Thailand (Honda Automobile (Thailand) Co., Ltd)
certain original equipment manufacture (OEM) automotive parts/components for Honda Civic.
In exchange, Thailand (Honda Automobile (Thailand) Co., Ltd.) will import from the Philippines
complementary parts/components for the OEM of Honda Civic and CR-V;

WHEREAS, AICO Certificate of Eligibility No. Honda /2007/48 was issued on 20 March 2007,
in favor of the participating companies in the Honda AICO arrangement;

WHEREAS, in consonance with Articles 5 and 7 of the Basic Agreement of the AICO Scheme, as
amended participating companies in the approved Honda AICO Arrangements shall qualify for 0%
preferential tariff rate to be extended by Thailand and the Philippines as participating countries.

NOW, THEREFORE, I, GLORIA MACAPAGAL ARROYO, President of the Philippines,
pursuant to the powers vested in me under Section 402 of the Tariff and Customs Code of 1978, as
amended, do hereby order:

SECTION 2. The AICO rate provided in Annex “A” shall be accorded to the AICO entity in
Thailand (Honda Automobile (Thailand) Co. Ltd.) upon the effectivity of this Executive Order;

SECTION 3. Upon the effectivity of this Executive Order, the articles specifically listed in
the aforesaid Annex “A” which are entered or withdrawn from warehouses in the Philippines for
consumption shall be subject to the applicable AICO preferential tariff rates specified under Section 1
hereof, subject to qualification under the Rules of Origin for the CEPT, as evidence by the Certificate of
Origin - Form “D”;

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SECTION 5. This Executive Order shall take effect immediately upon publication in a national
newspaper of general circulation.

DONE in the City of Manila, this 31st day of October, in the year of Our Lord, Two Thousand
and Seven.

(Sgd.) GLORIA MACAPAGAL ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Reference: Annex “A”

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 680
AMENDING EXECUTIVE ORDER NO. 140, SERIES OF 1993

WHEREAS, Executive Order (EO) No. 46 dated September 4, 1986 granted authority to the
Ministry of Tourism (now Department of Tourism or DOT) through the Philippine Tourism Authority
(PTA) to establish and operate a duty and tax free merchandising system in the Philippines, and
mandated in Section 3 thereof that all net profits from merchandising operations conducted pursuant
thereto shall accrue to the Ministry of Tourism (now DOT), which shall allocate the same in accordance
with existing policies and regulations;

WHEREAS, EO No. 140 dated November 30, 1993 rationalized the Duty Free Stores/Outlets
and other operations in the country, and specifically provided in Section 4 thereof that the Duty Free
Philippines (DFP) shall remit to the National Government an amount equivalent to 1.5 percent of its
net sales;

WHEREAS, the remittance required from DFP by EO No. 140, series of 1993, is an additional
burden to DFP in view of the fact that all of its net profits are already being remitted to the DOT
pursuant to EO No. 46, series of 1986;

WHEREAS, the DFP remittances to the DOT are used exclusively to finance vital government
projects in the tourism sector, as well as to augment service facilities for tourists;

WHEREAS, amending EO No. 140, series of 1993, by deleting Section 4 thereof would relieve
DFP of its additional burden, as the remittance to DOT is tantamount to a remittance to the national
government as well.

NOW, THEREFORE, I, GLORIA MACAPAGAL ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby amend Executive Order No. 140,
dated November 30, 1993, by deleting Section 4 thereof.

All executive orders, rules and regulations and other issuances or parts thereof, which are
inconsistent with this Executive Order, are hereby revoked, amended, or modified accordingly.

This Executive Order shall take effect immediately.

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DONE in the City of Manila, this 19th day of November, in the year of Our Lord, Two Thousand
and Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

EXECUTIVE ORDER NO. 681

MERGING THE LIVELIHOOD CORPORATION (LIVECOR) AND THE NATIONAL
LIVELIHOOD SUPPORT FUND (NLSF)

WHEREAS, the Department of Human Settlements was created under Presidential Decree No.
1396 dated June 2, 1978;

WHEREAS, the Kilusang Kabuhayan at Kaunlaran (KKK) was created under Executive Order
No. (EO) 715 dated September 29, 1981 as a priority program of the government;

WHEREAS, the KKK was conceived to be the nationwide movement to mobilize the local
resources for the establishment of viable productive enterprises that would provide sources of
livelihood within the community;

WHEREAS, under Letter of Instructions No. (LOI) 1161, the KKK was given national budgetary
resources totaling one billion pesos (P1,000,000,000.00) initially set aside to fund the livelihood
projects;

WHEREAS, the KKK Processing Center Authority, later renamed Livelihood Corporation
(LIVECOR) was created under EO 866 dated January 11, 1983 to implement the establishment,
operation, maintenance and expansion of self-reliant and economically viable agro-industrial
processing areas in various region of the Philippines under the KKK;

WHEREAS, the LIVECOR Authority was governed by a Board of Trustees with the Minister of
Human Settlements as Chairman;

WHEREAS, the LIVECOR had a capitalization of one billion pesos (P1,000,000,000.00);

WHEREAS, under LOI 144 dated September 22, 1983, the KKK National Secretariat was tasked
to oversee the operations and administration of the Fund within the guidelines set forth therein;

WHEREAS, under EO 85 dated December 12, 1986, the Ministry of Human Settlements was
abolished;

WHEREAS, LIVECOR was attached to the Presidential Management Staff by virtue of Executive
Order No. 130, after the Ministry of Human Settlements was abolished in 1986;

WHEREAS, under EO No. 238 dated July 22, 1987, the KKK/National Livelihood Support
Fund (NLSF) capital and earnings were placed under the control and supervision of the Office of
the President which shall be exclusively utilized for the promotion, generation and development of
livelihood opportunities;

WHEREAS, under Memorandum Order (MO) 71 dated February 18, 1987, the payment of
separation benefits to officials and employees of the Ministry of Human Settlements and other agencies
abolished under EO 85 was ordered;

WHEREAS, under MO 85 dated April 30, 1987, the head of the Presidential Management Staff
(PMS) was ordered to oversee the orderly abolition of the Ministry of Human Settlements to include
the administration of separation benefits to those who will be separated from the service;

WHEREAS, under EO 327 dated June 9, 1988, the Bagong KKK (BKKK) Secretariat was created
to (i) implement the objectives and thrusts of the BKKK; (ii) carry out the consolidation of all KKK/
NLSF capital funds and the collection of unpaid loans; and (hi) conceptualize, evaluate, market and

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monitor BKKK as a Fund and its role in the delivery of livelihood opportunities and services to the
disadvantaged sectors of the society;

WHEREAS, under Section 37 of the Republic Act (RA) No. 6657, otherwise known as “An
act Instituting Agrarian Reform Program to Promote Justice and Industrialization, Providing the
Mechanism for its Implementation and for Other Purposes”, the BKKK Secretariat was transferred and
attached to the Land Bank of the Philippines (LBP) for its supervision including all its applicable and
existing funds, personnel, properties, equipment and records;

WHEREAS, under Administrative Order (AO) No. 75 dated August 6, 1993, the BKKK
Secretariat, including the BKKK Capital Fund/NLSF was directed to be transferred and attached to
the LBP in accordance with Section 37 of RA 6657 and shall be supervised through an Executive
Committee led by the President of the LBP as its Chairman;

WHEREAS, under EO 21 dated August 27, 1998, the LFVECOR was attached to the Office of
the Executive Secretary;

WHEREAS, under EO 75 dated February 19, 1999, the BKKK Secretariat was abolished and a
Management Committee was created in its place, led by the President of the LBP as Chairman and the
Executive Director of the NLSF as Vice-Chairman. The newly created Management Committee was
formed as the policy making body through which the LBP shall exercise supervision over the Fund;

WHEREAS, while the Management Committee of the NLSF created under EO 75 is endowed
with certain specific corporate powers, it lacks a formal creation into a corporation with separate and
distinct corporate personality;

WHEREAS, under EO 233 dated April 26, 2000, the attachment of LEVECOR and all its
subsidiaries was transferred to the Department of Agriculture;

WHEREAS, to be able to professionalize the handling and management of the Fund and for
the efficient collection of the previous loans granted under the KKK and LEVECOR, there is a need
to formalize the creation of the NLSF Management Committee by providing it with a corporate
personality;

WHEREAS, the Medium Term Philippine Development Plan (MTPDP) discourages the creation
of new government corporations;

WHEREAS, LIVECOR is no longer self-reliant and economically viable;

WHEREAS, Section 31, Title III, Book III of the 1987 Administrative Code vests in the President
the continuing authority to reorganize the Office of the President;

NOW, THEREFORE, I, GLORIA M. ARROYO, President of the Philippines, by virtue of the
powers vested in me by the Constitution and the law, do hereby order:

SECTION 1. Merger of NLSE and LIVECOR. - NLSF and LIVECOR shall be merged into a
non-stock, non-profit, body corporate to be known as Livecor. The new Livecor shall be transferred
and attached to the LBP pursuant to the mandate NLSF under R.A. 6657. As such, the NLSF employees
and personnel who are absorbed by the new Livecor shall be accorded the same benefits, privileges and
other entitlements similarly received by the LBP employees and officers subject to certain conditions
imposed by the new Livecor Board.

SECTION 2. Mandate. - The new Livecor shall undertake the promotion, generation and
development of livelihood and community based enterprises primarily in agri-business, including those
in the Agrarian Reform Communities, that will cater to the low-income bracket. It shall take charge of
developing and administering livelihood programs using the NLSF funds.

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SECTION 3. Additional Capital. - The new Livecor shall be infused with additional capital of
One Hundred Million Pesos (P100,000,000.00) that shall be sourced from the accumulated earnings
of NLSF.

SECTION 4. Eunctions and Composition of the Board of Directors of the new Livecor. The
Board of Directors of the new Livecor shall be the policy-making body composed of the following:

a. The Secretary of Agriculture or his designee as ex-officio Chairman;

b. Executive Director of the NLSF Secretariat as the ex-officio Vice-Chairman;

c. Nominee of President of the Philippines as Member;

d. Nominee of the Department of Agrarian Reform, approved by the President of the Philippines
as Member, as Member;

e. Nominee of the LBP, approved by the President of the Philippines, as Member;

f. Representative from the Labor Sector, appointed by the President of the Philippines, as
Member;

g. Nominee of the Department of the Interior and Local Government, approved by the President
of the Philippines, as Member.

The term of the Members of the Board of Directors of the new Livecor shall be one ( 1 ) year, and
they shall serve in a hold-over capacity until their successors shall have been appointed and qualified.

SECTION 5. Officers of the new Livecor. - The President of the new Livecor shall be the
Executive Director of the present NLSF Secretariat. The Vice-President, Corporate Treasurer, the
Corporate Secretary and other officers shall be elected by the Board of Directors in a meeting called for
that purpose and approved by the President of the Philippines.

SECTION 6. Transfer. - The administration and management of the NLSF shall be transferred
from the NLSF Management Committee to the new Livecor Board of Directors for administration,
management and development purposes.

All powers, functions, rights and duties previously exercised by the NLSF Management
Committee relating to the administration, management and development of NLSF’s programs, assets,
liabilities and records shall be transferred to and exercised by the new Livecor Board of Directors.

SECTION 7. Transfer Committee. - A Transfer Committee composed of the Secretary of
Agriculture or his designee, the Executive Director of the NLSF Secretariat, a representative each from
the Office of the President, Department of Agrarian Reform and Land Bank of the Philippines, shall
prepare the necessary plans and measures to effect the transfer of all programs, assets, liabilities and
records of the NLSF for the management, administration and development of the new Livecor within
thirty (30) days from the issuance of this Executive Order.

The NLSF Secretariat, the new Livecor and the Transfer Committee shall jointly submit a report
to the Presidential Management Staff on all actions taken to implement the provisions of this Executive
Order within thirty (30) days after the new Livecor shall have been re-organized;

SECTION 8. Personnel. - To ensure the continued implementation and management of the NLSF
during the period of transfer and transition, the NLSF personnel who are performing the functions
transferred to the new Livecor shall be absorbed and shall continue to perform such duties under
the management of the new Livecor; provided, that those personnel, at their option, may retire or be
separated from the service from the NLSF, and shall be entitled to the benefits provided by law at the
time of retirement or separation. The same option shall be made available to the Livecor personnel.

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SECTION 9. Operation Expenses. - The operating expenses of the new Livecor shall be charged
against the income generated by the NLSF and the liquidation of the assets of Livecor.

SECTION 10. Existing Policies and Rules. - Existing policies, guidelines, rules and regulations
with respect to the functions of the NLSF which have been transferred to the new Livecor shall
continue in effect until amended or modified accordingly.

SECTION 11. Repealing Clause. - All executive issuances, guidelines, rules and regulations, or
parts thereof which are contrary or inconsistent with the provisions of this Executive Order are hereby
repealed or modified accordingly.

SECTION 12. Effectivity. - This Executive Order shall take effect immediately.

City of Manila, 22 November 2007

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President

(Sgd.) EDUARDO R. ERMITA

Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 681-A

AMENDMENTS TO CERTAIN PROVISIONS OF EXECUTIVE ORDER 681
DATED 22 NOVEMBER 2007

I, GLORIA MACAPAGAL ARROYO, President of the Republic of the Philippines, by virtue of
the powers vested in me by the Constitution and the law, do hereby order:

With reference to Executive Order 681 dated 22 November 2007 directing “the merger of the
Livelihood Corporation (LIVECOR) and the National Livelihood Support Fund (NLSF)”, certain
provisions are hereby amended and promulgated as follows:

SECTION 1. Section 1, Merger of the NLSF and Livecor, to state the name of the merged NLSF
and Livecor as the “National Livelihood Development Corporation (NLDC)”.

SECTION 2. Section 4, Functions and Composition of the Board of Trustees, to read as follows:

SECTION 4. Functions and Composition of the Board of Trustees of the
NLDC. The Board of Directors of the National Livelihood Development
Corporation shall be the policy-making body composed of the following:

a. President of the Land Bank of the Philippines as ex-officio Chairman

b. Executive Director of the NLSF Secretariat as the ex-officio Vice-Chairman

c. Representative from the Office of the President of the Philippines as member

d. Nominee of the Department of Agriculture, approved by the President of the
Philippines as Member

e. Nominee of the Department of Agrarian Reform, approved by the President of the
Philippines as Member

f. Nominee of the Department of Interior and Local Government, approved by the
President of the Philippines as Member

g. Representative from the Labor Sector appointed by the President of the Philippines as
Member

SECTION 3. Section 5, Officers of the NLDC, to state as “The President of the NLDC shall be
the Executive Director of the present NLSF Secretariat. The Vice-President, Corporate Treasurer, the
Corporate Secretary and other officers shall be elected by the Board of Directors in a meeting called for
that purpose.

SECTION 4. All executive issuances, guidelines, rules and regulation, or parts thereof which are
contrary or inconsistent with the provisions of this Executive Order are hereby repealed or modified
accordingly.

SECTION 5. This Executive Order shall take effect immediately.

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City of Manila, 01 February 2008

(Sgd.) GLORIA MACAPAGAL-ARROYO
President of the Republic of the Philippines

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 682

DESIGNATING CALAPAN CITY AS THE REGIONAL CENTER OF REGION IV-B
OTHERWISE REFERRED TO AS THE MIMAROPA REGION

WHEREAS, it is the policy of the Government to promote regional development in order
to spur and accelerate economic growth in the countryside and thereby, attain sustainable national
development;

WHEREAS, the designation and development of Regional Center in every region does not only
foster efficient and effective delivery of government services, but likewise facilitate the establishment of
new center of government thereat that can induce economic activities and jumpstart the growth and
development in the countryside;

WHEREAS, there is an urgent need to designate a Regional Center for Region IV-B otherwise
known as the MIMAROPA Region, to foster better coordination and promote efficiency in the delivery
of the services by the Regional Offices of the area, and allow the development of a new government
center in the region.

WHEREAS, the Regional Development Council IV-B, in its Resolution dated 30 August 2007,
has favorably endorsed the designation of Calapan City as the Regional Center of the MIMAROPA
Region;

WHEREAS, the President, under Administrative Code of 1987 and other existing laws, has
the authority to designate the Regional Center for every region under her continuing authority to
reorganize the administrative structure of the Executive Branch;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Designation of the Regional Center of Region IV-B. The City of Calapan in
Mindoro Oriental is hereby designated as the mandated Regional Center of the Regional IV-B. In line
with this, the Provincial Government of Mindoro Oriental and City Government of Calapan shall
jointly identify, develop, maintain and administer the specific and appropriate site for said Regional
Center within the boundaries of Calapan City.

SECTION 2. Funding. The funding for the development, maintenance and administration of
the Regional Center and site may be drawn from internally generated funds of the concerned LGUs,
national government, and from other funding sources which may include private and business sector
through schemes allowed under existing laws.

SECTION 3. Catalyst for New Government Center. The development and operation of said
Regional Center shall be directed toward evolving it into a new center of government that will induce
economic activities and spur development in the Region. For this purpose, the NEDA Regional Office
IV-B, in coordination with the Office of the Presidential Adviser for New Government Centers, the
pertinent Local Government Units, the concerned government agencies and instrumentalities, and
private sector, shall formulate an overall program and strategy to achieve this objective. Such program

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and strategy shall be submitted to the Regional Development Council IV-B for its adoption and
inclusion in the regional investment priority plan of the MIMAROPA Region.

SECTION 4. Transfer of Regional Offices in the Regional Center. All the Regional Offices in
Region IV-B shall immediately relocate in the above mandated Regional Center, starting with the
establishment of their satellite offices in the area within six (6) months from the effectivity of this
Order, and their full transfer within eighteen (18) months thereafter. For this purpose, the Regional
Offices shall adopt and implement the respective relocation plan which should incorporate measures to
address possible concerns of employees affected by the transfer.

SECTION 5. Roles of the Government Agencies. All heads of Departments, Agencies and
Bureaus, including Government-Owned-and-Controlled-Corporations and Government Financial
Institutions, are hereby directed to provide support to the above transfer of the Regional Offices, and
to the development of the Regional Center in Calapan City as well as to its promotion as the new
center of government in MIMAROPA Region.

SECTION 6. Reportorial Requirement. The Regional Development Council IV-B, through the
NEDA Regional IV-B, shall submit regular status report to the Office of the President, copy furnished
the Office of the Presidential Adviser for New Government Centers and the Presidential Management
Office, on the compliance by the concerned Regional Offices and their respective Departments and
Head Offices with this Order, and the progress of the implementation of the above program and
strategy for the new center of government.

SECTION 7. Repealing Clause. All Orders and issuances or any part thereof, which are deemed
inconsistent with this Order, are hereby repealed or modified accordingly.

SECTION 8. Effectivity. This Order shall take effect immediately.

DONE in the City of Manila 22nd day of November, in the Year of Our Lord, Two Thousand
and Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANAN PALACE
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 683

AUTHORIZING THE USE OF FEES, REVENUES AND RECEIPTS FROM SERVICE CONTRACT
NO. 38 FOR THE IMPLEMENTATION OF DEVELOPMENT PROJECTS
FOR THE PEOPLE OF PALAWAN

WHEREAS, on 11 December, 1990, the Republic of the Philippines, represented by the
Department of Energy (DOE), entered into Service Contract No. 38 (SC 38) and engaged the services
of a consortirum composed today of Shell B.V., Shell Philippines LLC, Chevron Malampaya LLC and
PNOC-Exploration Corporation (EC), as Contractor for the exploration, development and production
of petroleum resources in an identified offshore area, known as the Camago-Malampaya Reservoir, to
the West Philippines Sea;

WHEREAS, Sec, 8 of Presidential Decree No. 910, authorizes the use of the fees, revenues and
receipts from SC 38 for such purpose as may be directed by the President of the Philippines;

WHEREAS, President as Chief Executive has a broad perspective of the requirements to develop
Palawan as a major tourism destination from the point of view of the National Government, which has
identified the Central Philippines Superregion, of which Palawan is a part, for tourism infrastructure
investments

WHEREAS, there is a pending court dispute between the National Government and the Province
of Palawan on the issue of whether Camago-Malampaya Reservoir is within the territorial boundaries
of the Province of Palawan thus entitling the said province to 40% of the Net Government Share in
the proceeds of SC 38 pursuant to Sec. 290 of Republic Act No. (RA) 7160, otherwise known as the
“Local Government Code”;

WHEREAS, Sec. 25 of RA 7160 provides that the President may, upon request of the local
government unit (LGU) concerned, direct the appropriate national government agency to provide
financial, technical or other forms of assistance to the LGU;

WHEREAS, the duly-authorized representatives of the National Government and the Province of
Palawan, with the conformity of the Representatives of the Congressional Districts of Palawan, have
agreed on a Provisional Implementation Agreement (PIA) that would allow 50% of the disputed 40%
of the Net Government Share in the proceeds of SC 38 to be utilized for the immediate and effective
implementation of development projects for the people of Palawan;

NOW, THEREFORE I, GLORIA M. ARROYO, President of the Philippines, by virtue of the
power vested in me by law, do hereby order:

SECTION 1. Subject to existing laws, and the usual government accounting and auditing rules
and regulations, the Department of Budget and Management (DBM) is hereby authorized to release
funds to the implementing agencies (lA) pursuant to the PIA, upon the endorsement and submission by
the DOE and/or the PNOC Exploration Corporation of the following documents:

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1.1. Directive by the Office of the President or written request of the Province of Palawan, the
Palawan Congressional Districts or the Highly Urbanized City of Puerto Princesa, for the
funding of designated projects;

1.2. A certification that the designated projects fall under the investment program of the Province
of Palawan, City of Puerto Princesa, and/or the development projects identified in the
development program of the National Government or its agencies; and

1.3. Bureau of Treasury certification on the availability of funds from the 50% of the 40% share
being claimed by the Province of Palawan from the Net Government Share under SC 38;

Provided, that the DBM shall be subject to the actual collections deposited with the National
Treasury, and shall be in accordance with the Annual Fiscal Program of the National Government.

SECTION 2. The lA to whom the DBM released the funds pursuant to Section 1 hereof shall be
accountable for the implementation of the projects and the expenditures thereon, subject to applicable
laws and existing budgeting, accounting and auditing rules and regulations. For recording purposes,
the DBM may authorize the lAs to open and maintain a special account for the amounts released
pursuant to this Executive Order (EO).

SECTION 3. The National government, with due regard to the pending judicial dispute, shall
allow the Province of Palawan, the Congressional Districts of Palawan and the City of Puerto Princesa
to securitize their respective shares in the 50% of the disputed 40% of the Net Government Share in
the proceeds of SC 38 pursuant to the PIA. For the purpose, the DOE shall, in consultation with the
Department of Finance, be responsible for preparing the Net Government Revenues for the period of
to June 30, 2010.

SECTION 4. The amounts released pursuant to this EO shall be without prejudice to any on-
going discussions or final judicial resolution of the legal dispute regarding the National Government’s
territorial jurisdiction over the areas covered by SC 38 in relation to the claim of the Province of
Palawan under Sec. 290 of RA 7160.

SECTION 5. The DBM is hereby authorized to promulgate such guidelines as amy be necessary
to ensure the orderly implementation of Secs. 1 and 2 hereof.

SECTION 6. All other orders, rules, regulations and issuances, or parts thereof which are
inconsistent with this Executive Order are hereby repealed or modified accordingly.

SECTION 7. This Executive Order shall take effect fifteen (15) days after its publication in a
newspaper of general circulation.

Done in the City of Manila, on this 1" day of December, in the year of our Lord, Two Thousand
and Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA

Source: Malacahang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacahang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 684

DESIGNATING THE NATIONAL GOVERNMENT LOT LOCATED AT JESUS STREET,
NAGTAHAN, PANDACAN, FOR THE USE AND ENJOYMENT OF THE
PEOPLE OF THE CITY OF MANILA

WHEREAS, Section 9 of Republic Act No. 6390 provides for an immediate source of funds to
finance the Agrarian Reform Program of the government, transferring certain assets of the national
government to augment the capital base of the Land Bank;

WHEREAS, Presidential Decree No. 139 excluded from the provision of Section 9 of Republic
Act No. 6390, certain properties and reserved the same for the use of the City of Manila, containing a
total area of Thirty One Thousand Two Hundred Eighty Four square meters (31,284 sq. m.), more or
less, situated in Jesus Street, Nagtahan, Pandacan, Manila;

WHEREAS, out of the reserved total area, improvements were introduced on the Four Thousand
Five Hundred square meter (4,500 sq. m.) lot on which four-storey Multipurpose and Administration
buildings were constructed, which are being administered by a non-governmental organization (NGO)
accredited by the Technical Education and Skills Development Authority (TESDA) for the delivery of
service to the people of Manila, such as education and technology transfer;

WHEREAS, there is need to fully make use of the lot that will enhance the program of the
national government through TESDA to benefit the people of the City of Manila.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Lot Use. The Four Thousand Five Hundred square meters (4,500 sq. m.) lot situated
in Jesus Street, Nagtahan, Pandacan, Manila, as well as all improvements thereon, is herby designated
and reserved for the use and benefit of the City of Manila through TESDA.

SEC. 2. Institution of Programs. TESDA and the accredited NGO shall devise and implement
programs for manpower and livelihood training by utilizing the subject lot and buildings, including all
the improvements thereon, for the benefit of the City of Manila.

SEC. 3. Repealing Clause. All other executive orders, rules, regulations and other issuances or
parts thereof inconsistent with this Order are hereby repealed, superseded or modified accordingly.

SEC. 4. Effectivity. This Executive Order shall take effect immediately.

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Done in the City of Manila this 17th day of December, in the year of Our Lord Two Thousand
and Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

EXECUTIVE ORDER NO. 685

EXPANDING THE PRESCHOOL COVERAGE TO INCLUDE CHILDREN
ENROLLED IN DAY CARE CENTERS

WHEREAS, Section 2 of Republic Act 8980 declares the policy that the state shall institutionalize
integrated system of Early Childhood Care and Development that will serve all children 0-5 years old
including children with special needs and respect for cultural diversity with end in view of improving
the quality of life for young children. The law likewise ensures that there is an efficient system of
identification, prevention, referral, and intervention for development disorders and disabilities in early
childhood;

WHEREAS, the Philippines has committed to the Global Movement on Education for All (EFA)
since 1990 and has affirmed its commitment in the Philippine EFA 2010 National Action Plan, a
component of which is the universal participation and total elimination of drop-out and repetition
in Grades 1-3 through a quality assured program for pre-school and early childhood care and
development for 3-5 years old children;

WHEREAS, pre-school experience is a determinant factor in the performance of Grade 1 students
in the formal school system and was reported that children with quality early experience achieved
significantly higner than those without ECD experience;

WHEREAS, pre-school experiences provide the essential stimulation needed by 5 year old
children to become ready for formal schooling in Grade 1, thus should be expanded to reach all
children aged 5 years old, with first priority to reaching those children least likely to enter school or
most likely to drop-out or repeat in Grades 1-3;

NOW, THEREFORE, I, GLORIA-MACAPAGAL - ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Coverage - The Department of Education is directed to expand its Pre-school
program coverage to include pre-school children enrolled in Day Care Centers.

SECTION 2. Training of Teachers - Existing Day Care Center workers shall be provided with
teacher training on the curriculum and competencies for pre-school education together with the
necessary instructional materials by the Department of Education.

SECTION 3. Curriculum and Instructional Supervision - The supervision of educational
programs, curriculum and instruction in Day Care Centers shall be exercised by the Department of
Education.

SECTION 4. Local Government Units (LGUs) to support existing ECCD programs - The
following health and nutrition related programs shall continue to be supported by the LGU’s:

i) Primary health care;

ii) Pre-natal and post-natal care;

hi) Nutrition education;

iv) Micronutrient supplementation; and

v) Supplementary feeding.

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The Department of Health (DOH) and the National Nutrition Council (NCC) shall continue
to extend support to LGU’s and the Department of Education for additional resources and technical
support whenever these are available.

SECTION 5. Local Government Unit support - The following programs shall continue to be
supported by the LGU’s in the form of basic infrastructure, provision of facilities, materials and
equipment, and compensation to service providers: i) day care program; ii) parent effectiveness service;
iii) child minding centers; iv) family day care; and v) parent-child development program.

SECTION 6. Roles and responsibilities of DSWD and other member agencies of the National
Early Childhood Care and Development Coordinating Council (NECCDCC) - The Department of
Social Welfare and Development (DSWD) and the other member agencies of the NECCDCC shall
continue to perform their functions as provided by Sections 26 and 27 of Rule IV of the Rules and
Regulations Implementing RA 8980 subject to the mandate of the Department of Education expanding
its Pre-School Programs as contained in this Executive Order.

SECTION 7. Focus for initial implementation - Eor purposes of the initial implementation of this
Order, the Department of Education shall initially focus on 5 year old children enrolled in Day Care
Centers in the 50% of the lowest performing schools in each region.

SECTION 8. Funding - The Department of Education shall include in its annual general
appropriations the necessary funding to support and to sustain the implementation of the said Pre-
School Programs.

SECTION 9. Repealing Clause - All executive issuances, rules and regulations or parts
thereof which are inconsistent with this Executive Order are hereby revoked, amended, or modified
accordingly.

SECTION 10. Effectivity - This Executive Order shall take effect immediately and shall be
implemented beginning the school year 2008 - 2009.

DONE in the City of Manila, this 10th day of January, in the year of Our Lord, Two Thousand
and Eight.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANAN PALACE
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 686
TOLL REGULATORY BOARD

TRANSFERRING BACK THE TOLL REGULATORY BOARD FROM THE DEPARTMENT OF
PUBLIC WORKS AND HIGHWAYS TO THE DEPARTMENT OF TRANSPORTATION AND
COMMUNICATIONS AND CLARIFYING ITS MANDATE

WHEREAS, on 31 March 1977, Presidential Decree No. (PD) 1112 authorized the establishment
of toll facilities on public improvements and created a board for the regulation thereof, now known as
the Toll Regulatory Board (TRB or Board);

WHEREAS, PD 1112 gave the Board the power, subject to the approval of the President of the
Philippines, to enter into contracts in behalf of the Republic of the Philippines for the construction,
operation and maintenance of toll facilities;

WHEREAS, PD 1112 gave the Board the power to determine and decide the kind, type and
nature of public improvement that will be constructed and/or operated as toll facilities;

WHEREAS, PD 1112 gave the Board the power to condemn private property for public use
subject to the provisions of existing law;

WHEREAS, PD 1112 gave the Board the power to issue, modify and proclaim from time to time
the rates of toll that will be charged the direct users of toll facilities and upon notice and hearing, to
approve or disapprove petitions for the increases therefore;

WHEREAS, PD 1112 gave the Board the power to grant authority to operate a toll facility and to
issue the necessary “Toll Operation Certificate”;

WHEREAS, on 10 October 2002 Executive Order No. (EO) 133 transferred the TRB from the
Office of the President (OP) to the Department of Transportation and Communications (DOTC);

WHEREAS, on 29 August 2006 the Supreme Court in Mirasol vs. the Department of Public
Works and Highways and TRB decided that the DOTC and not DPWH “has the authority to
administer and enforce all laws, rules and regulations relative to transportation”;

WHEREAS, on 30 July 2007, EO 644 transferred the TRB from DOTC to the Department of
Public Works and Highways;

WHEREAS, entering into contracts is not a regulatory function but rather an administrative
function;

WHEREAS, determining and deciding the kind, type and nature of public improvement that
will be constructed and/or operated as toll facilities is not a regulatory function but rather a planning
function;

WHEREAS, the power the power to condemn private property for public use is subject to
the provisions of existing law on expropriations, and forms part of the implementing powers of
infrastructure agencies; the power to condemn private property for public use subject to the provisions
of existing law;

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WHEREAS, the power to issue, modify and proclaim from time to time the rates of toll that will
be charged the direct users of toll facilities and upon notice and hearing, to approve or disapprove
petitions for the increases therefore is a regulatory function;

WHEREAS, the power to grant authority to operate a toll facility and to issue the necessary “Toll
Operation Certificate” is a regulatory function;

WHEREAS, the President of the Philippines has continuing authority to recognize the
administrative structure of the OP by, among others, transferring any agency under the OP to any
department of agency of the government pursuant to paragraph 3, Section 31, Chapter 10, Title III,
Book III of EO 292;

WHEREAS, for purposes of government rationalization, regulation should be separated from
administration, planning or implementation;

NOW THEREEORE I, GLORIA M. ARROYO, President of the Republic of the Philippines, by
virtue of the powers vested in me by law, do hereby order:

SECTION 1. By virtue of the required approval of the President for the Board to exercise its
power to enter into contracts in behalf of the Republic of the Philippines for the construction, operation
and maintenance of toll facilities for highways, roads, bridges and public thoroughfares, such power is
hereby removed from the Board and vested in the DPWH;

SECTION 2. The power to determine and decide the kind, type and nature of highways, roads,
bridges and public thoroughfares is hereby vested in the DPWH;

SECTION 3. The power condemn private property for highways, roads, bridges and public
thoroughfares is hereby vested in the DPWH;

SECTION 4. The Board shall concentrate on the following powers:

(a) The power to issue, modify and proclaim from time to time the rates of toll that will
be charged the direct users of toll facilities and upon notice and hearing, to approve or
disapprove petitions for the increases; and

(b) The power to grant authority to operate a toll facility and to issue the necessary “Toll
Operation Certificate.”

SECTION 5. The Board with its clarified functions is hereby transferred back from DPWH to
DOTC.

Manila, 19 December2007

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacahang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacahang Records Office.

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MALACANANG

MANILA

EXECUTIVE ORDER NO. 687

PLACING TASK FORCE SUBIC UNDER THE PRESIDENTIAL ANTI-SMUGGLING GROUP

WHEREAS, Task Force Subic was created by Executive Order 384 to prevent and suppress
smuggling and other related practices against customs laws at the Subic Bay Freeport and all areas
under jurisdiction of the Subic Bay Metropolitan Authority (SBMA);

WHEREAS, large-scale smuggling and fraud upon customs and other related practices undermine
the economy and national security;

WHEREAS, there is a need to closely supervise the activities of Task Force Subic so as to
effectively curtail smuggling and other related practices against customs laws at the Subic Bay Freeport
and all areas under jurisdiction of the SBMA;

NOW, THEREFORE, I, GLORIA-MACAPAGAL - ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Placement under the Presidential Anti-Smuggling Group. Task Force Subic is hereby
placed under the supervision of the Presidential Anti-Smuggling Group.

SECTION 2. Effectivity. This Executive Order shall take effect immediately.

DONE in the City of Manila, this 28th day of December, in the year of Our Lord, Two Thousand
and Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 688

STRENGTHENING AND EXPANDING THE COVERAGE OF IMPLEMENTATION AND
PRESCRIBING THE RULES AND REGULATIONS OF PRESIDENTIAL DECREE NO. 1345

ISSUED ON APRIL 2, 1978

WHEREAS, under Republic Act (RA) No. 6234, the State adheres to the policy of undertaking
a comprehensive and continuing water program and the management of waterworks systems must be
supervised and controlled by the State to insure continuous supply of clean water for domestic uses
which are essential public services that are vital to public health and safety;

WHEREAS, pursuant to the commitment of the national government and in line with the
10-point Agenda of the Arroyo Administration of ensuring the potable water supply requirements
of the local government units, the Metropolitan Waterworks and Sewerage System (MWSS) shall
implement a program of construction and improvement of the present water distribution system,
including the complete take over and control of the water systems of subdivision housing projects in
Metro Manila and nearby towns and cities in its service area;

WHEREAS, there is an urgent need to strengthen and expand the implementation of Presidential
Decree (PD) No. 1345 as part of the strategy of the MWSS to improve the efficiency and viability of the
water systems of subdivision housing projects and clarify the responsibilities of other critical support
agencies, particularly the Housing and Land Use Regulatory Board (HLURB), in the implementation of
the said Presidential Decree to bring down operating cost and make it affordable to the end-consumers;

WHEREAS, Section 1 and 2 of PD 1345 mandated the MWSS to “xxx upon petition of the
Homeowners Association and upon recommendation of the National Housing Authority, take over the
operation and maintenance of centralized water systems of residential subdivisions within its territorial
jurisdiction. Upon takeover, xxx the MWSS shall cause the system to operate at the desired level to
provide adequate potable water supply. The cost to render the system operable shall be chargeable
to the subdivision owner/developer provided that the provision of adequate water supply has been
specified or implied in the contract of sale or other forms used in offering the housing units within
the project for sale. Otherwise, the cost to make the system operational shall be chargeable to the
homeowners of the subdivision.”

WHEREAS,, pursuant to its corporate mandate under Section 3 of RA 6234, the MWSS or its
agents can construct works across, over, through, and/or alongside any stream, watercourse, canal,
ditch, street, avenue, highway or railway, whether public or private, to rehabilitate the water system
inside or outside the subdivision housing projects;

WHEREAS, the primary scheme envisioned in the implementation and development of water
distribution and upgrading of water system of subdivision housing project is the arrangement with the
private sector which shall require no direct government funding or appropriation;

WHEREAS, the MWSS, in consultation with the HLURB was tasked, among others, to issue the
necessary implementing rules and guidelines to implement the provisions of PD 1345;

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NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, do
hereby order:

SECTION 1. The MWSS is hereby directed to be the lead agency in the implementation of
Presidential Decree 1345 and, either by itself or through its private concessionaries, shall perform the
following:

1. Upon petition of the homeowners’ association or the owner/developer, oversee the
development and upgrading of the water distribution system directly to housing subdivision
projects, including the take over of the centralized water system. Upon take over, the two
private concessionaires are enjoined to provide water services that are at par if not better than
the acceptable performance standards set in the concession agreement.

2. Review the plans and issue the necessary certification for the putting up of water systems of
new subdivision housing projects, including those implemented by the shelter agencies and the
local government units to ensure that their water reticulation system conforms with acceptable
standard requirements, prior to issuance of housing permits and licenses;

3. Extend its water connection to flagship housing projects and resettlement sites including
nearby towns of Metro Manila within its area of jurisdiction;

4. Conduct compliance monitoring and inventory of subdivision housing projects whose water
systems should have been turned over to MWSS pursuant to its mandate under PD 1345;

5. Conduct investigation and initiate filing of cases on the reported charging of exorbitant water
fees in subdivision housing projects and refusal of some private developers to comply with the
intent of PD 1345; and

6. Issue summons and direct the housing developers with the assistance of the HLURB to allow
the MWSS and its concessionaires/agents (pursuant to Section 3 of RA 6234) to construct or
perform rehabilitation works of the water systems on existing roads, streets, avenue, highway
whether inside or outside the subdivision housing projects, in order to efficiently and effectively
implement this Order.

SECTION 2. As a regulatory agency of the housing sector having oversight function over private
developers engaged in housing development, the HLURB is hereby directed to perform the following;

1. Recommend compliance by the owner/developer of housing subdivision projects of Section 2
of PD 1216 (which amended PD 957), that upon issuance of certification from the HLURB
regarding the completion of roads, alleys, sidewalks, the same should be donated to the local
government unit (LGUs);

2. Give the favorable recommendation before MWSS can take over water systems and provide
assistants to effect the take over by the MWSS or its concessionaires/agents; and

3. Secure the approval of the HLURB Board for the inclusion of the requirements of Section 1 of
PD 1345 in the operating guidelines of BP 220 and PD 957.

SECTION 3. An Executive Committee is hereby created, which shall act as the overall
coordinating body with oversight functions over the implementation of PD 1345. The said committee
shall be composed of the following:

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Chairman : Administrator, MWSS

Members : Chairman, National Water Resources Board

Chief Executive Officer, HLURB
Representative of Concerned LGU
Representatives of the two Private Concessionaires

The Executive Committee, with MWSS as secretariat, shall have the following functions:

1. Eormulate policies, general rules and guidelines needed for the uniform and effective
implementation of water connection services at all level, including the valuation criteria to be
used for existing water supply systems in residential subdivisions which may be turned over to
MWSS for administration pursuant to this Order;

2. Ensure the participation of various agencies, local government units and private sector
organizations;

3. Monitor the overall implementation of the program and where necessary assist the local
government units and shelter agencies in the resolution of problems and issues relative to the
water requirements of their housing projects;

4. Eormulate systems and procedures for the turn over of existing water systems to MWSS; and

5. Submit quarterly reports on the progress of implementation of the program to the Office of the
President.

SECTION 4. The MWSS may call upon other government departments or agencies for support
and assistance in the implementation of this Executive Order, such as the Department of the Interior
and Local Government, the Metro Manila Development Authority, and the National TIousing
Authority.

SECTION 5. The members of the Executive Committee shall provide the necessary funds to carry
out their roles and tasks relative to this Order. Additional funding requirements for operations shall
be incorporated in the regular budgets of the member agencies as part of their regular programs as
mandated by pertinent laws.

SECTION 6. The attached “Rules and Regulations Implementing the provisions of Presidential
Decree 1345 dated April 2, 1978” which shall form an integral part of this Executive Order, are hereby
approved and adopted.

IN WITNESS WHEREOF, I have hereunto set my hand and caused the seal of the Republic of the
Philippines to be affixed.

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Done in the City of Manila, this 27th day of December, in the year of Our Lord, Two Thousand
and Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

EXECUTIVE ORDER NO. 689

TRANSFERRING THE PHILIPPINE MINING DEVELOPMENT CORPORATION FROM THE
OFFICE OF THE PRESIDENT TO THE DEPARTMENT OF ENVIRONMENT
AND NATURAL RESOURCES

WHEREAS, in order to closely monitor and oversee the efficient and effective implementation
of the country’s utilization and development of its mineral resources, there is a need to transfer the
Philippine Mining Development Corporation from the Office of the President to the Department of the
Environment and Natural Resources;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Transfer. - The Philippine Mining Development Corporation is hereby transferred
from the Office of the President to the Department of Environment and Natural Resources.

SECTION 2. Repealing Clause. - All executive issuances, rules and regulations or parts
thereof which are inconsistent with this Executive Order are hereby revoked, amended, or modified
accordingly.

SECTION 3. Effectivity. - This Executive Order shall take effect immediately.

DONE in the City of Manila, this 27th day of December, in the year of Our Lord, Two Thousand
and Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

EXECUTIVE ORDER NO. 690

TRANSFERRING THE LAND REGISTRATION AUTHORITY (LRA) FROM THE DEPARTMENT
OF JUSTICE TO THE DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

WHEREAS, the Land Registration Authority (LRA) is an attached agency of the Department of
Justice (DOJ);

WHEREAS, LRA is mandated to issue decrees of registration and certificates of title and register
documents, patents and other land transactions for the benefit of landowners. Agrarian Reform-
beneficiaries and the registering public in general;

WHEREAS, the Department of Environment and Natural Resources (DENR) is the government
agency that exercises supervision and control over alienable and disposable public lands;

WHEREAS, there is a need to transfer LRA from DOJ to DENR in order to have a concerted and
well-coordinated effort in formulating policies as well as planning and implementing programs and
projects of the LRA; and

WHEREAS, under Section 31, Chapter 10, Book III of Executive Order No. 292, series of 1987,
otherwise known as the “Administrative Code of 1987”, the President, in order to achieve simplicity,
economy and efficiency, has the continuing authority to reorganize the administrative structure of the
Office of the President.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, by
virtue of the powers vested in me by law, do hereby order:

SECTION 1. The Land Registration Authority, an attached agency of the Department of Justice
(DOJ), is hereby transferred to the Department of Environment and Natural Resources (DENR).

SECTION 2. All other rules, regulations and issuances, or parts thereof, which are inconsistent
with this Executive Order are hereby deemed repealed or modified accordingly.

SECTION 3. This Executive Order shall take effect immediately.

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DONE in the City of Manila, this 28th day of December, in the year of Our Lord, Two Thousand
and Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 691

TEMPORARILY MODIFYING THE RATES OF IMPORT DUTY ON CRUDE PETROLEUM
OILS AND REFINED PETROLEUM PRODUCTS UNDER SECTION 104 OF THE TARIFF AND
CUSTOMS CODE OF 1978 (PRESIDENTIAL DECREE NO. 1464), AS AMENDED

WHEREAS, soaring fuel prices to unprecedented levels brought about by current international
and geopolitical tensions and tight gasoline supplies warrant the modification in the rates of duty on
crude petroleum oils and refined petroleum products to protect consumer welfare;

WHEREAS, an automatic tariff mechanism based on certain triggers indexed to international
oil prices would soften the impact of high and rising world prices on the economy and the consuming
public without necessarily draining government revenues;

WHEREAS, Section 6 (Tariff Treatment) of Republic Act No. 8479, otherwise known as
the “Downstream Oil Industry Deregulation Act of 1998” provides that: “Any law to the contrary
notwithstanding and starting with the effectivity of this Act, a single and uniform tariff duty shall be
imposed and collected both on imported crude oil and imported refined petroleum products at the rate
of three percent (3%): Provided, however, That the President of the Philippines may, in the exercise
of his powers, reduce such tariff rate when in his judgment such reduction is warranted, pursuant
to Republic Act No. 1937, as amended, otherwise known as the Tariff and Customs Code: Provided,
further. That beginning January 1, 2004 or upon implementation of the Uniform Tariff Program under
the World Trade Organization and ASEAN Free Trade Area commitments, the tariff rate shall be
automatically adjusted to the appropriate level notwithstanding the provisions under this Section.”

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. The articles specifically listed in Annex “A” hereof, as classified under Section 104
of the Tariff and Customs Code of 1978, as amended, shall be subject to the Most-Favoured-Nation
(MEN) rate of import duty in accordance with the schedule indicated opposite each article.

SECTION 2. The rates of import duty on tariff headings not enumerated and those listed but
represented by the symbol “x x x” shall remain in force and in effect.

SECTION 3. The MEN rates on crude and refined petroleum products shall be reduced based
on certain triggers indexed to oil prices in the world market. The tariffs shall be automatically restored
as international oil prices move down based on the same trigger prices. The MEN rates shall take
effect upon certification by the Department of Energy (DOE) that a trigger price has been reached
and notification of the same shall have been made to the Department of Finance (DOF), for which the
corresponding Customs Memorandum Order shall be issued by the Bureau of Customs (BOC).

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SECTION 4. Upon the effectivity of this Executive Order, all articles listed in Annex “A” which
are entered and withdrawn from warehouses in the Philippines for consumption shall be levied the
MEN rates of duty therein prescribed in accordance with Section 3 above.

SECTION 5. The DOE, in coordination with the Department of Finance (DOF), the Department
of Trade and Industry (DTI), the National Economic and Development Authority (NEDA), and the
Bureau of Customs (BOC) shall promulgate the guidelines to implement this Executive Order.

SECTION 6. All Presidential issuances, administrative rules and regulations, or parts thereof,
which are contrary to or inconsistent with this Executive Order are hereby revoked or modified
accordingly.

SECTION 7. This Executive Order shall take effect immediately following its complete
publication in two (2) national newspapers of general circulation in the Philippines or in the Official
Gazette.

DONE in the City of Manila, this 10th day of January, in the year of Our Lord, Two Thousand
and Eight.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Reference: Annex A

Source: Malacahang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 601 - 700]. Manila:
Malacahang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 692

EXTENDING FURTHER THE DURATION OF OPERATION OF THE PRESIDENTIAL MIDDLE
EAST PREPAREDNESS COMMITTEE (PMEPC) TO 31 MARCH 2008

I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, by virtue of the powers vested
in me by law, do hereby order, in view of the volatile political situation in Lebanon, the extension of
the duration of the operations of the Presidential Middle East Preparedness Committee (PMEPC) to
31 March 2008 or unless otherwise directed by the President.

The Committee shall be provided with a funding allocation of Three Million Pesos
(P3, 000,000.00) for its administrative and operational expenses to be provided by the Office of the
President. Additional financial requirements that may be needed by the Committee shall be sourced out
by the Department of Budget and Management (DBM) from available funds of the concerned PMEPC
member-agencies, subject to the usual government accounting and auditing rules and regulations.

All other rules, regulations and issuances or parts thereof which are inconsistent with this Order
are hereby repealed or modified accordingly.

This Order shall take effect immediately.

Done in the City of Manila, this 28th day of December, in the year of our Lord, Two Thousand
and Seven.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2007). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

EXECUTIVE ORDER NO. 693

MANDATING THAT HEADS OF GOVERNMENT AGENCIES HAVING THE RANK AND
LEVEL OF DEPARTMENT SECRETARY SHALL HENCEFORTH BE ADDRESSED AS

SECRETARY OF THEIR AGENCIES

WHEREAS, the heads of government agencies are addressed as Chairman, Director-General,
Commissioner, and other similar title/designation;

WHEREAS, such title/designation enjoys the benefits, privileges and emoluments equivalent to
the rank of Secretary as stated in their charters;

WHEREAS, in maintaining the highest standard of morale and to observe formality and equity
during meetings, affairs and correspondence within the ranks of members of the Presidential family;

NOW, THEREFORE I, GLORIA M. ARROYO, President of the Republic of the Philippines, by
virtue of the powers vested in me by law, do hereby order:

Section 1. Order — All Heads of Government Agencies having the rank and level of a Department
Secretary shall be addressed as Secretary of their agency.

Section 2. Repealing Clause — All orders, issuances, rules and regulations or parts thereof
inconsistent with this Executive Order are herby repealed or modified accordingly.

Section 3. Effectivity — This Executive Order shall take effect immediately.

Done in the City of Manila, this 18th day of January, 2008.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

EXECUTIVE ORDER NO. 694

ENABLING HIGHER EDUCATION INSTITUTIONS TO OPT TO LADDERIZE THEIR
EDUCATION PROGRAMS WITHOUT NEED FOR ISSUANCE OF PERMIT FROM THE
COMMISSION ON HIGHER EDUCATION AND THE TECHNICAL EDUCATION
AND SKILLS DEVELOPMENT AUTHORITY

WHEREAS, the agenda of this administration is to prioritize the creation of six to ten million
jobs and the expansion of youth opportunities.

WHEREAS, the Commission on Higher Education (CHED) and the Technical Education
and Skills Development Authority (TESDA) are the agencies tasked to ensure the implementation
of Executive Order No. 358 “TO INSTITUTIONALIZE A LADDERRIZED INTERFACE
BETWEEN TECHNICAL-VOCATIONAL EDUCATION AND TRAINING (TVET) AND HIGHER
EDUCATION (HE)

NOW THEREFORE, I GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by the Constitution, do hereby order the following:

Section 1. Order — A higher education institution whose programs have been granted
Government Recognition by the CHED may opt to ladderize said recognized programs without need
for permit either from CHED or TESDA, considering that said ladderization is within the purview of
curricular matter, provided that:

a. The CHED and TESDA have issued a model curriculum for the program/s to be offered.

b. The Higher Education Institution shall submit a copy of the curriculum for each of the
proposed ladderized program to CHED and TESDA who shall see to it that the minimum curricular
requirements are observed.

Section 2. Repealing Clause — All orders, issuances, rules and regulations or parts thereof
inconsistent with this Executive Order are herby repealed or modified accordingly.

Section 3. Effectivity — This Executive Order shall take effect immediately.

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Done in the City of Manila, this 18th day of January, 2008.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANAN PALACE
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 695

DEVOLVING FULLY BURNHAM PARK TO THE CITY GOVERNMENT OF BAGUIO

WHEREAS, the Philippines has the competitive edge in tourism in the natural wonders of our
country and the natural warmth of its people;

WHEREAS, the role of the National Government is to provide the roads to those wonders and
the means to take the tourists there rather than to manage resorts;

WHEREAS, Executive Order No. (EO) 224, dated February 10, 1995, transferred the
administration, maintenance, management and operation of the Burnham Park Reservation from the
Philippines Tourism Authority (PTA), to the City Government of Baguio;

WHEREAS, the transfer has been effected since November 1997 by virtue of a Memorandum of
Agreement (MOA) entered into among the management of Burnham Park has been a financial drain
on PTA, Baguio City and the National Parks Development Committee (NPDC);

WHEREAS, by virtue of the MOA the NPDC shall work, facilitate and extend to the employees
of Burnham Park casual appointments to replace Job Order appointment.

WHEREAS, under EO 224 the City Government of Baguio cannot encumber, mortgage, or
alienate any portion of the Park;

WHEREAS, under EO 224 all revenues and collections generated from the operation of the
Park shall accrue to the treasury of the City Government of Baguio and shall be used solely for the
management, maintenance, operation and development of the Park;

WHEREAS, under EO 224 the Department of Tourism and the PTA shall continue to provide
promotional; support and technical assistance for the operation and further development of the Park;

WHEREAS, the City Government of Baguio assures that it has the capability and capacity to
operate, manage, maintain and further develop Burnham Park;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, hereby order:

SECTION 1. Transfer of Control and Further Development - Aside from administration,
maintenance, management and operation as provided by Executive No. (EO) 224, the control and
further development of Burnham Park, including all facilities and improvements thereon except those
specified in Section 3 of EO 224, are hereby transferred from the Philippine Tourism Authority (PTA)
to the City Government of Baguio.

SECTION 2. National Parks Development Committee (NPDC) Employees - The NPDC
Employees shall be transferred to the City Government of Baguio, which may rationalize the personnel
complement of the resort in accordance with Civil Service rules and regulations.

SECTION 3. Control and Supervision - The City Government of Baguio shall have full control of
the administration, operation, management, maintenance and further development of Burnham Park.

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SECTION 4. Qualification of Prohibited Act - The City Government of Baguio shall not
encumber, mortgage or alienate any portion of the Burnham Park unless approved by the Secretary of
Tourism.

SECTION 5. Revenues - All revenues and collections generated from Burnham Park shall accrue
to the treasury of the City Government of Baguio and shall first be used for the operation, management
and maintenance of the Park. Any net profit not needed for management, operation and maintenance
of Burnham Park shall be shared equally by the City and the PTA.

SECTION 6. Promotions and Technical Assistance - The Department of Tourism shall provide
the same promotional support and technical assistance for Burnham Park as privately-run tourist
facilities.

SECTION 7. Repealing Clause - All other executive issuances, rules and regulations or parts
thereof which are inconsistent with the provisions of this Executive Order are hereby repealed,
amended or modified accordingly.

SECTION 8. Effectivity - This Executive Order shall take effect immediately.

DONE in the City of Manila, this 10th day of January, in the year of Our Lord, Two Thousand
and Eight.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacahang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 601
Malacanang Records Office.

700]. Manila:

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MALACANANG

MANILA

EXECUTIVE ORDER NO. 696

CREATING THE PAYAPANG BAYAN TASK FORCE (PBTF) ON LOCAL PEACE INITIATIVES

Whereas, Section 31, Chapter 10, Title III, Book III of the Administrative Code of 1987 provides
the President with continuing authority to organize the Office of the President;

Whereas, Article VII, Section 17 of the Constitution provides that the President shall have control
of all executive departments, bureaus, and offices;

Whereas, there is a need for a Task Force attached directly under the Office of the President
that will pro-actively and exhaustively conduct local peace initiatives and assist the President in the
campaign for peace and order in all the Provinces all over the Philippines;

Now, therefore, I, Gloria Macapagal-Arroyo, President of the Republic Philippines, by virtue of
the powers vested in me by the Constitution and the laws do hereby order:

Section 1. Creation - PAYAPANG BAYAN TASK FORCE (PBTF) is hereby created under the
Office of the President, pursuant to Article VII, Section 17 of the Constitution.

Section 2. Composition - The PBTF shall be led by A Member of Civil Society, the National
Security Council shall be Vice Chair and the Office of the Presidential Adviser on the Peace Process, the
Department of National Defense, the Department of the Interior and Local Government, the Union of
Local Authorities of the Philippines, the Department of Justice and the Presidential Legislative Liaison
Office shall be its members.

Section 3. Functions - The PBTF shall pro-actively and exhaustively conduct local peace process
initiatives, spearhead, advance and lay policy and legal ground work for local peace and security
programs in all the Provinces all over the Philippines.

Section 4. Repeal. - All other issuances, orders, rules and regulations, or parts thereof, inconsistent
with this Executive Order are hereby repealed or modified accordingly.

Section 5. Effectivity. - This Executive Order shall take effect immediately upon approval.

Done in the City of Manila, this 18th day of January, 2008.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANAN PALACE
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 697

PLACING THE OFFICE ON THE MUSLIM AFFAIRS UNDER THE OVERSIGHT OF THE
OFFICE OF THE PRESIDENTIAL ADVISER ON THE PEACE PROCESS AND REPEALING
EXECUTIVE ORDER NO. 517 DATED MARCH 20, 2006

I, GLORIA MACAPAGAL ARROYO, President of the Philippines, by virtue of my continuing
authority to reorganize the administrative structure of the Office of the President, do hereby order:

Section 1. The Office on Muslim Affairs (OMA) is hereby placed under the oversight of the Office
of the Presidential Adviser on the Peace Process (OPAPP).

Section 2. The Presidential Adviser on the Peace Process shall, whenever appropriate and
necessary, institute reforms and direct and/or manage projects to align OMA with the government’s
thrust for peace and development.

Section 3. Executive Order No. 517 dated March 20, 2006 is hereby repealed.

Section 4. This Executive Order shall take effect immediately.

Done in the City of Manila, this 18th day of January, in the year of our Lord, Two Thousand and
Eight.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 601
Malacanang Records Office.

700]. Manila:

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 698

STRENGTHENING PROCLAMATION NO. 1637, S. 1977, WHICH DECLARED THE LUNGSOD
SILANGAN TOWNSITE RESERVATION, AND DESIGNATING THE LOCAL GOVERNMENT
UNITS OF ANTIPOLO, SAN MATEO AND RODRIGUEZ, ALL IN THE PROVINCE OF RIZAL,
AS ADMINISTRATOR OF AREAS IDENTIFIED AS NEW TOWNSITE FOR GOVERNMENT
EMPLOYEES OF METRO MANILA AND RIZAL PROVINCE

WHEREAS, Article XIII, Section 9 of the 1987 Constitution provides that the State shall, by
law, undertake a continuing program of urban land reform and housing which will make available at
affordable cost, decent housing and basic services to underprivileged and homeless citizens in urban
centers and resettlement areas;

WHEREAS, there is a need to guide and improve the allocation, utilization, management, and
development of the country’s land resources, and to ensure their optimum use, under the principles of
economic growth and efficiency, social equity and justice;

WHEREAS, Proclamation No. 1283, dated 21 June 1974, reserved 5,005 hectares of land situated
in Antipolo for Townsite purposes under the provisions of the Public Land Act;

WHEREAS, Proclamation No. 1637, dated 18 April 1977, amended Proclamation No. 1283
by increasing the area covered by the Lungsod Silangan Townsite to 20,312 hectares of properties
comprising portions of Antipolo City, Municipalities of San Mateo and Rodriguez, in the Province of
Rizal;

WHEREAS, the government is aware that shelter programs generate multiple economic benefits
to the marginalized sectors of society and result in the pump priming of our economy and the
simulation of growth in all sectors;

WHEREAS, the President has laid out a Ten-point Agenda to decongest Metro Manila by forming
new cores of government and housing centers in Luzon, Visayas and Mindanao;

WHEREAS, the Local Government Units of Antipolo, San Mateo and Rodriguez, all in the
Province of Rizal, are spearheading the initiative to help alleviate the housing problem and are
committed to fast-track the initiatives as spelled out in Memorandum Order No. 72 in support of the
National Shelter Program;

WHEREAS, such initiative showcases this Administration’s seriousness in its anti-poverty
strategies, particularly on asset reform that directs the redistribution of physical assets to the poor;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

Section 1. The Local Government Units (LGUs) of Antipolo, San Mateo and Rodriguez, all in the
Province of Rizal, are hereby designated as the administrator of parcels of land within the Lungsod
Silangan Townsite Reservation, which shall then be declared as “New Townsite for Government
Employees of Metro Manila and Rizal Area”, subject to private rights, if any there be, and to final
survey.

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As administrator, these concerned LGUs, within their respective territorial jurisdiction, shall
manage and oversee the development, including the use of proclaimed sites as resource mobilization
strategy to raise alternative funds for immediate development of the New Town Housing Project.

Section 2. The Land Registration Authority (LRA), under the supervision of the Department of
Justice (DOJ), shall assist the concerned LGUs in the determination of government lands subject of
the New Town Housing Project, in coordination with the Department of Environment and Natural
Resources (DENR).

Section 3. The Housing and Urban Development Coordinating Council (HUDCC) shall assist the
concerned LGUs in the formulation of development plans and implementing guidelines for the New
Town Housing Projects of each locality.

Section 4. The DENR shall cause the conduct of boundary and parcellary survey on areas to be
administered by the concerned LGUs and shall be the agency primarily responsible for the disposition
of these lands pursuant to the provisions of Public Land Act by virtue of Proclamation No. 1283, as
amended by Proclamation No. 1637.

Section 5. The concerned LGUs and HUDCC may call on other government agencies for
assistance in the formulation of development plans of Lungsod Silangan Townsite Reservation.

Section 6. All orders, issuances, rules and regulations, or parts thereof which are inconsistent with
the provisions of this Order are hereby amended or modified accordingly.

Section 7. This Order shall take effect upon publication in a national newspaper of general
circulation.

Done in the City of Manila, this 18th day of January, in the year of Our Lord, Two Thousand
and Eight.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacahang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 601
Malacahang Records Office.

700]. Manila:

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MALACANANG

MANILA

EXECUTIVE ORDER NO. 699

AMENDING THE COMPOSITION OF THE PRESIDENTIAL ANTI-GRAFT COMMISSION
CREATED UNDER EXECUTIVE ORDER NO. 12, SERIES OF 2001, AS AMENDED.

WHEREAS, the Presidential Anti-Graft Commission has been strengthened to demonstrate the
government’s firm resolve to pursue and intensify its anti-corruption campaign;

WHEREAS, in order to meet its expanded mandate, there is now a need to reorganize or
restructure the Presidential Anti-Graft Commission,

NOW, THEREFORE, I, GLORIA M. ARROYO, President of the Republic of the Philippines, by
virtue of the powers vested in me by the Constitution and existing laws, do hereby order the following
amendments to Executive Order No. 12, as amended by Executive Order No. 327 (series of 2004),
Executive Order Nos. 531, 531-A and 531-B (series of 2006) and Executive Order No. 670 (series of
2007):

Section 1. The first paragraph of Section 2 of Executive Order No. 12 series of 2001, as amended
by Executive Order No. 327 (series of 2004) is hereby further amended to read as follows:

“Composition. -The Commission shall be composed of a Chairperson and four (4)
Commissioners to be appointed by the President. All members of the Commission shall serve
on a full-time basis and at least three (3) of them shall be members of the Philippine Bar.”

Section 2. All orders, rules, regulations and issuances or parts thereof inconsistent with this
Executive Order are hereby repealed, amended or otherwise modified accordingly.

Section 3. This Executive Order shall take effect immediately upon publication in a newspaper of
general circulation.

Done in the City of Manila, Philippines, this 18th of January, 2008.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

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MALACANAN PALACE
MANILA

EXECUTIVE ORDER NO. 700

IDENTIFYING THE SOCIAL SECURITY IDENTIFICATION SYSTEM AS THE CORE OF THE
UNIFIED MULTI-PURPOSE IDENTIFICATION (ID) SYSTEM AND DIRECTING THE SOCIAL
SECURITY SYSTEM TO IMPLEMENT THE STREAMLINING AND HARMONIZATION OF
THE ID SYSTEMS OF ALL GOVERNMENT AGENCIES AND GOVERNMENT -OWNED AND

CONTROLLED CORPORATIONS

WHEREAS, Executive Order No. 420 dated April 26, 2005 required all government agencies
and government-owned and controlled corporations to streamline and harmonize their identification
(ID) systems and authorized the Director- General, National Economic and Development Authority
(NEDA) to implement the same;

WHEREAS, some work has been done by the NEDA on the assignment;

WHEREAS, there are twelve million cardholders of the Social Security System;

WHEREAS, in other countries like the United States, the Social Security card is the most used ID
system;

NOW, THEREFORE I, GLORIA M. ARROYO, President of the Philippines, by the powers vested
in me by law, do hereby order:

SECTION 1. The Social Security card shall serve as the core of the unified multi-purpose
identification (ID) system.

SECTION 2. The Administrator, Social Security System (SSS) is hereby mandated to take over
the work of the Director- General, National Economic Development Authority to implement the
streamlining and harmonization of the ID systems of all government agencies and government- owned
and controlled corporations towards a unified multi-purpose ID system.

SECTION 3. The Administrator, SSS shall build on the work already done by the Director-
General, NEDA.

SECTION 4. The NEDA and the National Statistics Office as well as all other agencies identified
by the SSS shall assist the SSS in developing the unified multi- purpose ID system.

SECTION 5. The SSS shall use its funds to carry out the objectives of this Order.

SECTION 6. All Executive Orders or issuances, or portions thereof, which are inconsistent with
this Executive Order, are hereby revoked, amended or modified accordingly.

SECTION 7. This Executive Order shall take effect immediately.

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DONE in the City of Manila, this 16* day of January, in the year of Our Lord, Two Thousand
Eight.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 601 - 700]. Manila:
Malacanang Records Office.

387

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 701

DIRECTING ALL HEADS OF DEPARTMENTS, BUREAUS, OFFICES, AGENCIES, AND
THE INSTRUMENTALITIES OF THE GOVERNMENT TO SUPPORT THE POWER
INFRASTRUCTURE REQUIREMENTS AND THE INVESTMENT OF HANJIN HEAVY
INDUSTRIES AND CONSTRUCTION-PHILIPPINES, INC. IN SUBIC AND IN MINDANAO

WHEREAS, the ten-point agenda of the present administration includes the development of Subic
as the best international service and logistic center in the region;

WHEREAS, Hanjin Heavy Industries and Construction-Philippines, Inc. (Hanjin) will invest
about US$1.6 Billion for a shipyard project in the Subic Bay Freeport Zone that will generate about
20,000 employment thereat;

WHEREAS, Hanjin will likewise invest about US$2 Billion for another shipyard project in
Mindanao that will generate about 30,000 employment thereat;

WHEREAS, there is a need for the concerned government entities to support the investment of
Hanjin, particularly its power requirements, in order for the country to become a landmark in the
shipping industry in the Southeast Asian Region.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

Section 1. Connection Assets in Subic. - The National Transmission Corporation (TRANSCO)
shall acquire and take possession of the Connection Assets (15 km. 230 kV Transmission Line and
230kV/22.9kV Substation) constructed by Hanjin in Subic.

Section 2. Funding and repayment scheme. - TRANSCO shall advance the necessary funds to
immediately acquire and take possession of the Connection Assets.

The specific responsibilities of government agencies involved in the acquisition of the Connection
Assets (such as, but not limited to TRANSCO, DBM and DOF), including the details of implementing
a repayment scheme, shall be embodied in a Memorandum of Agreement for the purpose.

Section 3. TRANSCO Connection Charges. - Where applicable, TRANSCO may collect
Connection Charges as approved by the Energy Regulation Commission (ERC) from users of the
Connection Assts.

Section 4. Generation, Transmission and Distribution Rates to Hanjin. - The National Power
Corporation (NPC) and TRANSCO shall provide discounted generation and transmission rates of
US$0.0491 for year 0 to year 6 and US$0.0600 for year 7 to year 10 in its shipyard locations in
the Subic Bay Freeport Zone and in Mindanao in accordance with the policies, rules and regulations
of these government corporations. Should the prevailing industrial retail rates decrease to a level
lower than the discounted rates agreed and granted by the NPC and TRANSCO, the rates shall be

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correspondingly decreased to match the prevailing rates. Said discounted rates shall be reported to
the ERC. Distribution rates collected by any government entities (i.e., Philippine Economic Zone
Authority), if any, shall be waived for the period covered by the grant of discounted generation and
transmission rates by NPC and TRANSCO.

Section 5. Role of Departments, Bureaus, Offices, Agencies, Instrumentalities of the Government. -
All heads of departments, bureaus, offices, agencies and instrumentalities of the government are hereby
directed to give full support to the power infrastructure requirements and investment of Elanjin in the
Subic Bay Ereeport Zone and in Mindanao.

Section 6. Repealing Clause. - All executive orders, rules and regulations and other issuances
or parts thereof, which are inconsistent with this Executive Order, are hereby revoked, amended, or
modified accordingly.

Section 7. Separability Clause. - Any portion or provision of this Executive Order that maybe
declared unconstitutional shall not have the effect of nullifying its other portions or provisions, as long
as such remaining portions can still be given effect.

Section 8. Effectivity. - This Executive Order shall take effect fifteen (15) days after its publication
in a national newspaper of general circulation.

DONE in the City of Manila, this 22nd day of January, in the year of Our Lord, Two Thousand
and Eight.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 701 - 830]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 702

MODIFYING THE RATES OF DUTY ON CERTAIN IMPORTED ARTICLES AS PROVIDED
UNDER THE TARIFF AND CUSTOMS CODE OF 1978, AS AMENDED, IN ORDER TO
IMPLEMENT THE PREFERENTIAL TARIFF RATES ON CERTAIN PRODUCTS UNDER THE
ASEAN INDUSTRIAL COOPERATION (AICO) SCHEME, IN FAVOR OF PHILIPPINE AUTO
COMPONENTS, INC. (COE NOS. DENSO/2007/11 AND DENSO/2007/12).

WHEREAS, the Philippines is a Contracting Party to the Basic Agreement on the ASEAN
Industrial Cooperation Scheme (AICO) signed in Singapore on 27 April 1996;

WHEREAS, the Philippines is a signatory to the Protocol to Amend the Basic Agreement on the
AICO Scheme signed in Singapore on 21 April 2004;

WHEREAS, the Philippines is a participating country in the approved AICO Arrangements of
Philippine Auto Components, Inc. (PACI) along with Indonesia and Malaysia;

WHEREAS, under the AICO Certificate of Eligibility No. Denso/2007/11, the Philippines
(Philippine Auto Components, Inc.) will import from Indonesia (PT. Denso Indonesia and PT. Denso
Sales Indonesia) certain original equipment manufacture (OEM) parts/components for motor vehicles,
as specified in Annex “A”. In exchange, Indonesia (PT. Denso Indonesia and PT. Denso Sales Indonesia)
will import from the Philippines complementary parts/components for the OEM of motor vehicles;

WHEREAS, AICO Certificate of Eligibility No. Denso /2007/11 was issued on 26 March 2007,
and was amended on 02 August 2007, in favor of the participating companies in the Denso AICO
Arrangement;

WHEREAS, under the Denso AICO Certificate of Eligibility No. Denso/2007/12, the Philippines
(Philippine Auto Components, Inc.) will import from Malaysia [Denso (Malaysia) Sdn. Bhd.] certain
original equipment manufacture (OEM) automotive parts/components for motor vehicles as specified
in Annex “B”. In exchange, Malaysia [Denso (Malaysia) Sdn. Bhd.] will import from the Philippines
complementary parts/components for the OEM of motor vehicles;

WHEREAS, AICO Certificate of Eligibility No. Denso /2007/12 was issued on 02 August 2007,
in favor of the participating companies in the Denso AICO Arrangement;

WHEREAS, in consonance with Articles 5 and 7 of the Basic Agreement of the AICO Scheme,
participating companies in the approved Denso AICO Arrangements shall qualify for 0-5%
preferential tariff rates to be extended by Indonesia, Malaysia and the Philippines as participating
countries.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines,
pursuant to the powers vested in me under Section 402 of the Tariff and Customs Code of 1978, as
amended, do hereby order:

SECTION 1. The articles specifically listed in Annexes “A” and “B” hereof, as classified under
Section 104 of the Tariff and Customs Code of 1978, as amended, shall be accorded the AICO rate of
zero on parts/components as specified in Column 6 thereof.

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SECTION 2. The AICO rate provided in Annexes “A” and “B” shall be accorded to the AICO
entities in Indonesia (PT Denso Indonesia and PT. Denso Sales Indonesia) and Malaysia [Denso
(Malaysia) Sdn. Bhd.] upon the effectivity of this Executive Order;

SECTION 3. In the event that any subsequent changes are made in the basic (MEN) Philippine
rate of duty on any of the articles listed in Annexes “A” and “B” to a rate lower than the AICO rate
prescribed in Column 6 of Annexes “A” and “B” such articles shall automatically be accorded the
corresponding reduced rate of duty.

SECTION 4. Upon the effectivity of this Executive Order, the articles specifically listed in the
aforesaid Annexes “A” and “B” which are entered or withdrawn from warehouses in the Philippines
for consumption shall pay the applicable AICO preferential tariff rates specified under Section 1
hereof, subject to qualification under the Rules of Origin for the CEPT, as evidenced by the Certificate
of Origin - Form “D”.

SECTION 5. Any and all revisions to the AICO company appearing in Column 5, of Annexes
“A” and “B” as well as in pertinent Section of this Executive Order shall be communicated immediately
to the Bureau of Customs by the Board of Investments within five (5) days after receipt of the official
copy of the COE on the revised part number/s and/or change or addition of the AICO company from
the ASEAN Secretariat.

SECTION 6. This Executive Order shall take effect immediately following its complete
publication in two (2) newspapers of general circulation in the Philippines.

DONE in the City of Manila, this 22nd day of January, in the year of Our Lord, Two Thousand
and Eight.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

References: Annexes A and B
Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 701 - 830]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 703

MODIFYING THE RATES OF DUTY ON CERTAIN IMPORTED ARTICLES AS PROVIDED
FOR UNDER THE TARIFF AND CUSTOMS CODE OF 1978, AS AMENDED, IN ORDER TO
IMPLEMENT THE COMMITMENT TO REDUCE THE TARIFF RATES ON EIGHTY PERCENT
(80%) OF THE PRODUCTS IN THE INCLUSION LIST TO ZERO PERCENT UNDER THE
COMMON EFFECTIVE PREFERENTIAL TARIFF (CEPT) SCHEME FOR
THE ASEAN FREE TRADE AREA (AFTA)

WHEREAS, the ASEAN Economic Ministers agreed during their meeting in September 2002 that
the CEPT rates on at least 80% of the products in the individual Inclusion Lists of the six (6) original
ASEAN Member States would be reduced to 0% by 2007;

WHEREAS, the NEDA Board during its meeting on 18 December 2007 approved the grant of
CEPT rates of 0% on various products in the Philippine Inclusion List in compliance with the 80%
target;

WHEREAS, Section 402 of the Tariff and Customs Code of 1978 (Presidential Decree No. 1464),
as amended, empowers the President of the Republic of the Philippines, upon the recommendation of
the National Economic and Development Authority, to increase, reduce or remove existing protective
rates of import duty, as well as to modify the form of duty;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. The articles specifically listed in Annex “A” (Articles Granted Zero Duty Under the
CEPT Scheme for the AFTA) hereof, as classified under Section 104 of the Tariff and Customs Code of
1978, as amended, shall be subject to the ASEAN CEPT rates in accordance with the schedule indicated
in Column 4 of said Annex. The ASEAN CEPT rates so indicated shall be accorded to imports coming
from ASEAN Member States applying CEPT concession to the same products pursuant to Article 4 of
the CEPT Agreement and its Interpretative Notes.

SECTION 2. From the date of effectivity of this Order, all articles listed in Annex “A” entered
or withdrawn from warehouses in the Philippines for consumption shall be imposed the rates of duty
therein prescribed subject to compliance with the Rules of Origin as provided for in the Agreement on
the CEPT Scheme for the AFTA signed on 28 January 1992.

SECTION 3. All presidential issuances, administrative rules and regulations, or parts thereof,
which are contrary or inconsistent with this Executive Order are hereby repealed or modified
accordingly.

SECTION 4. This Executive Order shall take effect immediately following its complete
publication in two (2) national newspaper of general circulation in the Philippines.

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DONE in the City of Manila, this 22nd day of January, in the year of Our Lord Two Thousand
and Eight.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 701 - 830]. Manila:
Malacanang Records Office.

393

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 704

AMENDING SECTION 4 OF E.O. NO. 486 DATED 12 JANUARY 2006 (LIFTING THE
SUSPENSION OF THE APPLICATION OP THE TARIFF REDUCTION SCHEDULE ON
PETROCHEMICALS AND CERTAIN PLASTIC PRODUCTS UNDER THE COMMON
EFFECTIVE PREFERENTIAL TARIFF (CEPT) SCHEME EOR THE
ASEAN FREE TRADE ARE (AFTA))

WHEREAS, E.O. No. 486 issued on 12 January 2006 provides for the lifting of the suspension
of the Common Effective Preferential Tariff (CEPT) tariff reduction schedule on petrochemicals and
certain plastic products and the reversion of the CEPT rates on these products to EO 161 (s.2003)
levels once the naphtha cracker plant is in commercial operation;

WHEREAS, there are other technologies other than naphtha cracking that could be used in the
manufacture of ethylene, propylene and other monomers;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, pursuant to the powers vested in me under Section 402 of the Tariff and Customs Code of
1978 (Presidential Decree No. 1464), as amended, do hereby amend Section 4 of E.O. 486 to read as
follows:

SECTION 4. The Department of Trade and Industry, in coordination with the National
Economic and Development Authority, the Department of Finance, the Tariff Commission
and the Bureau of Customs, shall promulgate the implementing rules and regulations
that will govern the reversion of the CEPT rates on petrochemicals and plastic products
to EO 161 ( s.2003) levels once the naphtha cracker plant OR ANY PLANT THAT
USES OTHER TECHNOLOGY FOR DOMESTIC PRODUCTION OF ETHYLENE,
PROPYLENE AND OTHER MONOMERS is in commercial operation.

This Executive Order shall take effect immediately following its complete publication in two (2)
newspapers of general circulation.

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DONE in the City of Manila, this 22nd day of January, in the year of Our Lord Two Thousand
and Eight.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 701 - 830]. Manila:
Malacanang Records Office.

395

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ARROYO I Volume 4

MALACANAN PALACE
MANILA

EXECUTIVE ORDER NO. 705

SUBJECTING ONLY NON-ACCREDITED PRIVATE SCHOOLS FOR INSTITUTIONAL
QUALITY ASSURANCE MONITORING AND EVALUATION

WHEREAS, the Philippine Accrediting Association of Schools, Colleges and Universities
(PAASCU) has been in existence for many years and has acquired a good reputation for accreditation;

WHEREAS, the Commission on Higher Education established the Institutional Quality Assurance
Monitoring and Evaluation (IQUAME) in 2005 for regulation purposes;

WHEREAS, there is a duplication of functions between PAASCU and IQUAME;

NOW THEREFORE I, GLORIA M. ARROYO, President of the Philippines, by the powers vested
in me by law, do hereby order:

Section 1. The Commission on Higher Education shall only subject private schools not accredited
by the Philippine Accrediting Association of Schools, Colleges and Universities (PAASCU) for
Institutional Quality Assurance Monitoring and Evaluation (IQUAME).

Section 2. Colleges and universities accreditation by PAASCU shall be automatically recognized
as accredited by IQUAME.

Section 3. IQUAME shall be a tool not only for regulation but also for incentives for accredited
colleges and universities.

DONE in Manila on this 2"‘* day of January, in the Year of Our Lord, Two Thousand and Eight.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 701 - 830]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 705 -A

AMENDING EXECUTIVE ORDER NO. 705, SERIES OF 2008, BY INCLUDING THE HIGHER
EDUCATION PROGRAMS ACCREDITED BY THE FOUR OTHER ACCREDITING AGENCIES
NOT TO BE SUBJECTED TO THE INSTITUTIONAL QUALITY ASSURANCE MONITORING
AND EVALUATION PROCESS, AND CREATING A COORDINATING COUNCIL FOR
ACCREDITATION HEADED BY THE COMMISSION ON HIGHER EDUCATION

WHEREAS, Executive Order No. 705 dated January 2, 2008 subjected private schools not
accredited with the Philippine Accrediting Association of Schools, Colleges and Universities (PAASCU)
to the Institutional Quality Assurance Monitoring and Evaluation (IQUAME) process;

WHEREAS, other accrediting agencies are desirous of the same benefits enjoyed by PAASCU-
accredited schools, colleges and universities;

WHEREAS, the Presidential Task Force for Education has endorsed the proposal of the
Presidential Commission on Educational Reform (PCER) for the establishment of a set of common
standards for accreditation per discipline.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

Section 1. Section 1 of Executive Order No. 705, dated January 2, 2008, is hereby amended to
read as follows:

“Section 1. Higher education institutions with programs accredited by the five existing
accrediting agencies, namely: the Philippine Accrediting Association of Schools, Colleges
and Universities (PAASCU), the Philippine Association of Colleges and Universities -
Commission on Accreditation (PACU-COA), the Association of Christian Schools, Colleges
and Universities - Accrediting Agency (ACSCU-AA), the Accrediting Agency of Chartered
Colleges and Universities (AACUP), and the Association of Local Colleges and Universities -
Commission on Audit (ALCU-COA), shall not be subjected by the Commission on Higher
Education (CHED) under the process of Institutional Quality Assurance Monitoring and
Evaluation (IQUAME), provided that these accrediting agencies conform with a set of
common standards formulated by a Coordinating Council on Accreditation (CCA), hereafter
to be established by the CHED.”

Section 2. The Coordinating Council on Accreditation, Creation and Composition. The
Coordinating Council on Accreditation (CCA) is hereby created, and shall be composed of a
Commissioner of the Commission on Higher Education (CHED) who shall sit as chair, and a
representative from each of the five (5) existing accrediting agencies as members.

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Section 3. CCA Secretariat. The CCA shall be assisted by a Secretariat who shall be based in the
CHED. Its main responsibility is to ensure the efficient and effective operations of the CCA. It shall be
composed of Technical Staff drawn from the CHED.

Section 4. CCA Meetings. The CCA shall meet at least once every quarter or as often as may be
determined by the CHED.

Section 5. Funding. The funds for the operating expenses of the CCA shall be drawn from the
Higher Education Development Eund (HEDE).

Section 6. Repeal. - All executive orders, rules and regulations and other issuances or parts
thereof, which are inconsistent with this Executive Order, are hereby revoked, amended, or modified
accordingly.

Section 7. Effectivity. - This Executive Order shall take effect fifteen (15) days after its publication
in a national newspaper of general circulation.

DONE in the City of Manila, this 10th day of April, in the year of Our Lord, Two Thousand and
Eight.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) IGNACIO R. BUNYE
Acting Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 701 - 800]. Manila:
Malacanang Records Office.

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MALACANAN PALACE
MANILA

EXECUTIVE ORDER NO. 706

MANDATING THE SECRETARY OF TOURISM TO EXERCISE THE ADMINISTRATION
AND CONTROL MANDATE OF THE PHILIPPINE TOURISM AUTHORITY OVER BORACAY

ISLAND AND FOR OTHER PURPOSES

WHEREAS, Presidential Decree No. (PD) 564 of October 2, 1974 charged and vested the
Philippine Tourism Authority (PTA) with functions and powers of tourism zone administration and
control;

WHEREAS, Proclamation No. 1801 of November 10, 1978 declared Boracay Island, Aklan as a
tourist zone under the administration and control of the PTA pursuant to PD 564;

WHEREAS, Letter of Instructions No. (LOI) 1298 of February 26,1983 constituted the
Chairman, PTA, the Chief of Constabulary (now Director General of the Philippine National Police),
the Commissioner of Immigration and Deportation, the Commanding Officer (now Commandant),
Philippine Coast Guard and the Provincial Health Officer into an Inter-Agency Committee with the
PTA as lead agency, to coordinate in enforcing the pertinent laws and regulations and to take action
within their respective jurisdiction to prevent the proliferation of all illicit activities which would
degrade the ecosystem and destroy the natural attractions of Boracay Island;

WHEREAS, LOI 1298 instructed the Mayor of Malay to suspend issuance of building permits for
any structure on Boracay Island pending the promulgation of a development plan for the Island by the
PTA;

WHEREAS, Executive Order No. (EO) 6 of August 7, 1998 established the Aklan Provincial
Tourism Special Development Task Force (Task Force) under the Office of the President which shall be
responsible for the overall coordination and supervision of the implementation of the Aklan Provincial
Tourism Master Plan;

WHEREAS, EO 6 mandated the Task Force to plan, conceptualize and draft the Aklan Province
Tourism Master Plan in the context of ensuring the sustainable development of the Province of Aklan
and the Island of Boracay;

WHEREAS, EO 377 of October 22, 2004 authorized an Eminent Persons Group to oversee the
sustainable development of Boracay tourism;

WHEREAS, Memorandum Order No. 214 of April 18, 2006 mandated the PTA to exercise
administration and control over Boracay Island;

WHEREAS, the Secretary of Tourism is the Chairman of PTA;

NOW THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, by
virtue of the powers vested in me by law, do hereby order:

Section 1. Secretary of Tourism. - The Secretary of Tourism, as Chairman of the Philippine
Tourism Authority (PTA), shall exercise the functions of the PTA as mandated by PD 564, Proclamation
No. 1801, Letter of Instructions No. 1298, Executive Order No. (EO) 6, EO 377 and Memorandum
Order No. 214

Section 2. Suspension of Building Permits. - Consistent with LOI 1298, the Mayor of Malay
shall suspend the issuance of building permits for any structure on Boracay Island unless approved by

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the Chairman of the PTA and the Governor of Aklan as Chairman of the Aklan Provincial Tourism
Development Task Force.

Section 3. Inter-Agency Committee. - The Inter-Agency Committee constituted by LOI 1298 shall
be reorganized as a full-time Task Force composed of responsible personnel from the member agencies
and headed in behalf of the Chairman of the PTA by the Group Secretary of the Eminent Persons
Group created by Executive Order No. 377.

Section 4. Group Secretary. - The Group Secretary shall have the rank and emoluments of
Undersecretary of Tourism.

Section 5. All executive issuances, orders, rules and regulations or parts thereof inconsistent with
this Executive Order are hereby revoked or modified accordingly.

Section 6. This Executive Order shall take effect immediately.

Done in the City of Manila, this 18* day of January, in the year of Our Lord, Two Thousand and
Eight.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 701 - 830]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 707

OPENING THE PORT OF APARRI AS A PRINCIPAL PORT OF ENTRY PURSUANT TO
SECTION 702 OF THE TARIFF AND CUSTOMS CODE OF THE PHILIPPINES AS AMENDED IN
RELATION TO REPUBLIC ACT NO. 7922 OR THE CAGAYAN SPECIAL
ECONOMIC ZONE ACT OF 1995.

WHEREAS, Republic Act No. 7922, entitled “ESTABLISHING A SPECIAL ECOMOMIC
ZONE AND FREE PORT IN THE MUNICIPALITY OF SANTA ANA AND THE NEIGHBORING
ISLANDS IN THE MUNICIPALITY OF APARRI, PROVINCE OF CAGAYAN, PROVIDING FUNDS
THEREFOR, AND FOR OTHER PURPOSES” provides that it is the “policy of the government to
actively encourage, promote, induce and accelerate a sound and balanced industrial, economic and
social development of the country in order to provide jobs to the people especially those in the rural
areas, increase their productivity and their individual and family income, and thereby improve the level
and quality of their condition through the establishment, among others, of special economic zones and
free ports in suitable and strategic locations in the country and through measures that shall effectively
attract legitimate and productive foreign investments”;

WHEREAS, the opening of the Port of Aparri into a customs principal port of entry will
complement efforts to accelerate further not just the economic growth but the total development of the
Cagayan Special Economic Zone;

WHEREAS, upgrading the status of the Port of Aparri into a principal port of entry will enable
said port to avail of the manpower complement and other resources from national government agencies
such as the Bureau of Customs, thereby hastening infrastructure and systems development which will
result in the port and the Cagayan Freeport Zone attracting more investors and other locators;

WHEREAS, the expansion of economic activity within the port requires that the Port of Aparri
be accorded the status as a principal port of entry;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

Section 1. Upgrading of the Port of Aparri and opening it as a Principal Port of Entry. - The
present Port of Aparri is hereby opened and declared as a principal port of entry to be known as the
District Port of Aparri.

Section 2. Authority of the Commissioner of Customs to define the jurisdictional limits of the
collection district affected. - The Commissioner of Customs, subject to the approval of the Secretary
of Finance pursuant to Section 701 of the Tariff and Customs Code of the Philippines (TCCP), as
amended, is hereby authorize to redefine the jurisdictional boundaries of the Port of San Fernando and
to delineate the jurisdictional limits of the new Principal Port of Entry which shall become Customs
Collection District No. XV and to be known as the District Port of Aparri.

Collection District XV of the Collection District of Aparri shall have jurisdiction over the entire
provinces of Cagayan, Isabela, Batanes, Nueva Vizcaya, Quirino and such other areas as shall be added

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by the Commissioner of Customs, excluding the area covered by the Freeport created under Republic
Act No. 7922. It shall have the ports of Curimao, Tuguegarao Airport and the Laoag International
Airport as its subports.

Section 3. Relationship between the Cagayan Freeport Zone Authority and the Bureau of
Customs. - To ensure the smooth operation of Port Irene, as a subport of the District Port of Aparri,
and taking into account the peculiar characteristics thereof, the Bureau of Customs and the Cagayan
Freeport Zone Authority (CFZA) shall, within thirty (30) days from the effectivity of this order, enter
into a Memorandum of Agreement defining their working relationships and the treatment of all
cargoes entering or leaving the freeport zone.

Section 4. Authority of the Commissioner of Customs to designate the officials of the Port of
Aparri. - The New Collection District No. XV, also known as the District Port of Aparri, shall be
headed by a Collector of Customs V, to be assisted by such Deputy Collectors of Customs as may be
determined and designated by the Commissioner of Customs. Each subport under the District Port of
Aparri shall be likewise headed by Port Collectors, to be assisted by such Deputy Port Collectors of
Customs as may be determined and designated by the Commissioner of Customs.

Section 5. Implementing Authority. - Subject to the approval of the Secretary of Finance, the
Commissioner of Customs is hereby authorized to determine the personnel requirements of the District
Port of Aparri, taking into account the principles of economy, efficiency and effectiveness. For this
purpose, he may, subject to applicable Civil Service rules and regulations, issue the needed orders to
effect the transfer or movement or personnel from any organizational unit of the Bureau to the Port
Irene.

Section 6. Appropriations. - Funds for the initial operations of the District Port of Aparri shall
be drawn from the available funds of the Bureau of Customs and subsequent appropriations shall be
incorporated into its budget proposals, subject to existing budgeting, accounting and auditing laws and
procedures.

Section 7. Effectivity. - This Executive Order shall take effect fifteen (15) days following the
completion of its publication in the Official Gazette or in a newspaper of general circulation.

Done in the City of Manila, this 18th day of February, in the year of our Lord, Two Thousand
and Eight.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 701 - 830]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

EXECUTIVE ORDER NO. 708

AMENDING EXECUTIVE ORDER NO. 152, SERIES OF 2002, AND DEVOLVING THE
FUNCTION OF THE PRESIDENTIAL COMMISSION FOR THE URBAN POOR AS THE
CLEARING HOUSE FOR THE CONDUCT OF DEMOLITION AND EVICTION ACTIVITIES
INVOLVING THE HOMELESS AND UNDERPRIVILEGED CITIZENS TO THE RESPECTIVE
LOCAL GOVERNMENT UNITS (LGUs) HAVING TERRITORIAL JURISDICTION OVER THE
PROPOSED DEMOLITION AND EVICTION ACTIVITES OF GOVERNMENT AGENCIES

WHEREAS, Executive Order No. 152, series of 2002, designated the Presidential Commission for
the Urban Poor (PCUP) as the sole clearing house for the conduct of demolition and eviction activities
involving the homeless and underprivileged citizens;

WHEREAS, Executive Order No. 152, series of 2002, granted the Presidential Commission
for the Urban Poor (PCUP) such powers to fulfill its mandate of ensuring strict compliance with the
requirements of just and humane demolition and eviction under the Urban Development and Housing
Act of 1992;

WHEREAS, pursuant to the established policy of local autonomy and decentralization, there
is a need to devolve the functions and mandate of the Presidential Commission for the Urban Poor
(PCUP) to the respective Local Government Units (LGUs) in whose territorial jurisdiction the proposed
demolition and eviction activities of all government agencies are to be undertaken.

NOW, THEREFORE, I, GLORIA-MACAPAGAL - ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Devolution of Clearinghouse functions. The clearinghouse functions of the PCUP
stated in Section 1 of Executive Order No. 152, series of 2002, are hereby devolved to the respective
cities and municipalities in whose territorial jurisdiction the proposed demolition and eviction activities
of government agencies are to be undertaken.

SECTION 2. Creation of Local Housing Boards. The Local Government Units must create their
own Local Housing Boards or any similar body through an appropriate ordinance before conducting
the clearinghouse functions granted to them in this Executive Order.

SECTION 3. Guidelines in the enactment of ordinance. The Department of Interior and Local
Government (DILG) is hereby ordered to issue the necessary guidelines for the enactment of ordinances
creating Local Housing Boards or any similar body to Local Government Units (LGUs) within six (6)
months from the effectivity of this Executive Order. The PCUP shall assist the Local Government Units
in enacting the ordinances in whatever capacity they can provide within the same period.

SECTION. 4. Residual Functions. The PCUP shall continue with its monitoring and reporting
functions. However, all clearinghouse functions, including issuance of notices and clearances to affected
families shall be the primary responsibility of the Local Government Unit concerned. The powers and
functions mentioned in subsections 4 to 11 of Section 1 and Section 9 of Executive Order No. 152,
series of 2002, shall remain with the PCUP.

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SECTION 5. All other orders, issuances or portions thereof, which are inconsistent with this
Executive Order are hereby revoked, amended or modified accordingly.

SECTION 6. This Executive Order shall take effect immediately.

DONE in the City of Manila, this 26th day of February, in the year of Our Lord, Two Thousand
and Eight.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacahang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 701 - 830]. Manila:
Malacahang Records Office.

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MALACANANG

MANILA

EXECUTIVE ORDER NO. 709

REDEFINING THE FUNCTIONS AND ORGANIZATIONAL STRUCTURE OF THE NATIONAL
COUNCIL FOR THE WELFARE OF DISABLED PERSONS WHICH IS RENAMED AS THE
NATIONAL COUNCIL ON DISABILITY AFFAIRS AND ATTACHED TO THE OFFICE OF THE
PRESIDENT, AND AMENDING FOR THE PURPOSE EXECUTIVE ORDER 676 (2007) AND

EXECUTIVE ORDER 232 (1987)

WHEREAS, the United Nations General Assembly adopted on 6 December 2006 the Convention
on the Rights of Persons with Disabilities under Resolution A/61/611 which recognizes the need to
promote and protect the human rights and fundamental freedoms of all persons with disabilities, and
to promote the inherent dignity including those who require more intensive support;

WHEREAS, the Standard Rules on the Equalization of Opportunities for Persons with Disabilities
was also adopted by the United Nations General Assembly at its 48th session on 20 December 1993
by virtue of Resolution 48/96 to ensure that persons with disabilities exercise the same rights and
obligation as others, and to recognize the principles and policy guidelines in influencing the promotion,
formulation and evaluation of policies, plans, programs and actions at the national, regional and
international levels to further equalize the opportunities for persons with disabilities;

WHEREAS, the World Programme of Action Concerning Disabled Persons was adopted by the
United Nations General Assembly on 3 December 1982 by virtue of Resolution 37/52 to promote
effective measures for the prevention of disability, rehabilitation and the realization of the goals of “full
participation” of persons with disabilities in social life and development, and of “equality”-,

WHEREAS, the existing policy of the United Nations on disability provides the establishment of
an office on disability affairs that should be under and attached to the highest office of the respective
governments to facilitate coordination and monitoring of all matters attendant thereto;

WHEREAS, the 1987 Philippine Constitution Article 13, Section 13 mandates the state to
establish a special agency for persons with disabilities for their rehabilitation, self-development and
self-reliance, and their integration into the mainstream of society;

WHEREAS, Republic Act 9442, Republic Act 7277 and Batas Pambansa Big. 344 all provided
the need for a strong agency to monitor and advocate the implementation of the programs and services
for disabled persons of government agencies.

WHEREAS, Presidential Decree No. 1509 created the National Commission Concerning
Disabled Persons to provide persons with disability the fullest measure of protection and assistance to
develop their abilities;

WHEREAS, E.O. 232, Series of 1987 provided for the structural and functional reorganization of
the National Council for the Welfare of Disabled Persons (NCWDP);

WHEREAS, the National Council for the Welfare of Disabled Persons (NCWDP), by virtue of
E.O. 676, Series of 2007, was transferred from the Department of Social Welfare and Development
(DSWD) to the Office of the President (OP);

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NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, by
virtue of the powers vested in me by law and the Constitution, do hereby order:

Section 1. Purpose. This Executive Order shall redefine the functions and organizational structure
of the National Council for the Welfare of Disabled Persons (NCWDP) which shall be renamed as
the National Council on Disability Affairs (NCDA) and which shall be attached to the Office of the
President amending for the purpose Executive Order 676 (2007) and Executive Order 232 (1987).

Section 2. Powers and Functions of the Council. The National Council on Disability Affairs,
hereinafter referred to as the “Council,” shall have the following powers and functions:

1. Formulate policies and propose legislations concerning the rights and well being of disabled
persons, and lead in the implementation of programs and services concerning the same;

2. Conduct consultative meetings and prepare symposia with all stakeholders, and undertake
program evaluation and monitoring to ensure that comprehensive, relevant and timely
programs and services are adequate and accessible to persons with disabilities;

3. Conduct researches and studies relevant to formulated policies to promote and enhance at all
levels the rights of persons with disabilities;

4. Establish, develop and maintain a data bank on disability in partnership with concerned
government agencies and non-government organizations and strengthen the referral services
to ensure availability of data to stakeholders and services to persons with disabilities including
provision of assistive devices;

5. Establish and maintain linkages and networking with local and international organizations,
including organizations of and for persons with disabilities to generate resources and to
maximize utilization of existing resources and for purposes of convergence;

6. Serve as a national working body to promote and monitor implementation of national laws
and international commitments;

7. Assist in the establishment of self-help organizations and the setting up of specific projects
through the provision of technical and financial assistance to draw out the active participation
of persons with disabilities in the social and economic development of the country. (Section 31,
RA 7277).

Section 3. Composition of the Council. The National Council on Disability Affairs is composed of
the Governing Board and its Secretariat. The Governing Board, hereinafter referred to as the “Board,”
shall be headed by a Chairperson coming from a non-government organization with the following
members:

Department of Social Welfare and Development
Department of Health
Department of Labor and Employment
Department of Education

Department of the Interior and Local Government
Department of Trade and Industry
Department of Public Works and Highways
Department of Transportation and Communications
Department of Foreign Affairs
Department of Justice

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Philippine Information Agency

Technical Education and Skills Development Authority; and Six (6) private individuals including
two (2) representatives from NGOs with national network on Persons with Disabilities (PWD),
two (2) disabled persons representing legitimate PWD organizations, and two (2) representatives
from civic groups and cause-oriented organizations concerned with the welfare of PWDs,
all of whom shall be appointed by the President upon the favorable recommendation of the
Chairperson.

The heads of the concerned departments and agencies shall as much as possible attend the
meetings of the Council. In their absence, department heads shall designate permanent and alternate
representatives, preferably with the rank of Undersecretary and Assistant Secretary, respectively, who
may attend and participate at meetings of the Board for them.

Section 4. The Chairperson, who shall be appointed by the President, shall be an automatic
member of the Board and shall be co-terminous with the President. The Chairperson shall have the
following duties and responsibilities:

1. To call and preside over the meetings of the Board and the Executive Committee.

2. To manage and administer the affairs of the Council and the Secretariat.

3. To monitor the implementation of policies approved by the Board.

4. To sign communications for the Board and represent the Board whenever necessary.

5. To solicit and accept, on behalf of the Board, gifts, grants or donations in accordance with
government rules, regulations and policies.

6. To execute contracts in the pursuit of the Council’s objectives as may be authorized by the
Board, in accordance with government rules and regulations.

7. To organize permanent or ad-hoc committees, consisting of members of the Board or such
other experts as are deemed necessary for the discharge of functions and objectives of the
agency.

The Chairperson shall be the link between the Board and the Secretariat. As such, the Chairperson
not only presides over all board meetings, but is also the chief executive officer over the operating units
of the organization.

The Chairperson shall have the rank, privileges and emoluments of an Undersecretary. The
Chairperson shall be assisted in his/her duties and responsibilities by an Assistant Secretary to be
appointed by the President upon the recommendation of the Chairperson.

Section 5. The Executive Committee. There will be an Executive Committee chaired by the Board
Chairperson composed of the eight (8) Sub-Committee Chairpersons and one (1) PWD who is a
regular member of the Board chosen by the Chairperson. The NCDA Executive Committee will resolve
policy issues or program recommendations before presentation to the Board.

Section 6. Sub-Committees. The Board shall have the following sub-committees:

1. Sub-Committee on Accessibility on Built Environment and Transportation - chaired by the
DPWH

2. Sub-Committee on Training, Employment and Livelihood - chaired by the DOLE

3. Sub-Committee on Auxiliary Social Services - chaired by the DSWD

4. Sub-Committee on Health - chaired by the DOH

5. Sub-Committee on Information, Communications and Technology - chaired by the DOTC

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6. Sub-Committee on Advocacy - chaired by the PIA

7. Sub-Committee on Education - chaired by the DepEd

8. Sub-Committee on International Disability Network - chaired by the DEA

The members of the sub-committees shall be selected by the Sub-Committee Chairperson from
among the members of the Board and other experts on their specific areas of concern.

The Board may create such other sub-committees and task forces as may be deemed necessary to
carry out its functions.

Local Government Units (LGUs) are encouraged to create local committees on disability affairs
and may designate a coordinator for PWD programs and services. Eunds for such purpose may be
sourced out by the LGUs concerned from their respective annual appropriations pursuant to Sections
35 and 36 of the Local Government Code.

Section 7. The Secretariat. The Board shall have a Secretariat which will provide the machinery to
coordinate functions, organize services, monitor policies and plans and evaluate the implementation of
programs and services for persons with disabilities as may be required by the Board in the exercise of
its functions. It shall be headed by an Executive Director, who shall be appointed by the Chairperson
upon the favorable recommendation of the Board. The Chairperson shall also appoint the other officers
and staff of the Secretariat upon the favorable recommendation of the Board.

The main divisions of the Secretariat shall be as follows:

1 . Office of the Executive Director

2. Administrative Division

3. Programs Management Division

4. Information, Education and Communication Division

5. Technical Cooperative Division

Section 8. Donations. The Council, through the Chairperson or such other official as may
be authorized by the Board, shall solicit and accept gifts, grants and donations in accordance with
government rules, regulations and policies.

The gifts, grants and donations shall be administered or disbursed by the Council for the purpose
for which they were given or in the absence of such, as the Board may determine, in accordance with
applicable laws, rules and regulations.

Section 9 . Appropriations. By virtue of this Executive Order renaming National Council for
the Welfare of Disabled Persons (NCWDP) as National Council on Disability Affairs (NCDA), the
appropriations for NCWPD will automatically be considered as funds of NCDA.

Section 10. Repealing Clause. All ordinances, rules and regulations, other issuances or parts
thereof that are inconsistent with this Executive Order are hereby repealed or modified accordingly.

Section 11. Effectivity. This Order shall take effect immediately.

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DONE in the City of Manila, Philippines, this 26th day of February, in the Year of Our Lord,
Two Thousand Eight.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 701 - 830]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 710

NATIONWIDE ADOPTION OF THE CORN-BASED FARMER-SCIENTISTS RESEARCH,
DEVELOPMENT AND EXTENSION (RDE) TRAINING PROGRAM FOR SUSTAINABLE
AGRICULTURAL DEVELOPMENT TO LIBERATE POOR FARMERS FROM THE
BONDAGE OF POVERTY AND HUNGER

WHEREAS, pursuant to the Philippine development objectives of enhancing the economy’s global
competitiveness and alleviating poverty and hunger, and consistent with the Administration’s focus on
agriculture as the engine of growth, the Medium Term Philippine Development Plan (MTPDP) 2004 -
2010 targets, among others, the development of at least two million hectares of new agribusiness lands
for the creation of at least two million jobs;

WHEREAS the new agribusiness lands for development include the 280,250 hectares of new
areas for corn production also covering those in the uplands where more than 20 million poor farmers
are dependent on corn grits for food but do not have adequate supply of the grain even for their own
consumption;

WHEREAS, there is a successful program known as the Corn-Based Farmer-Scientists Research,
Development and Extension (RDE) Training Program (FSTP), an extension program that integrates
agricultural research and development, which is designed to enable the poor farmers particularly those
in the upland, to liberate themselves from poverty by growing multiple crops and livestock in their
corn farms for increased incomes; and

WHEREAS, the FSTP program, which was first piloted in Argao, Cebu in 1994 and has
expanded province-wide in Cebu, in all six towns of Siquijor, some towns in Negros Oriental and
Leyte in the Visayas, San Jose, Occidental Mindoro in Luzon and Laak in Compostela Valley Province
in Mindanao, has successfully demonstrated that small marginalized farmers can be empowered with
scientific knowledge of farming to produce more than enough corn for food with a surplus for sale,
along with their production of vegetables, fruits and livestock, resulting in farmers’ increased income
by more than 100 percent, and thereby benefiting not only their families but also their communities
and local governments.

NOW, THEREFORE I, GLORIA MACAPAGAL-ARROYO, President of the Republic of
the Philippines, by virtue of the powers vested in me by law, do hereby order that the Corn-Based
Farmer- Scientists RDE Training Program be adopted throughout the country as a National Program
jointly implemented by Department of Agriculture (DA), Department of Agrarian Reform (DAR),
Department of Environment and Natural Resources (DENR), Department of Science and Technology
(DOST), Department of Interior and Local Government (DILG), University of the Philippines at Los
Banos (UPLB), state universities and colleges (SUCs) and other concerned agencies; and funded by the
Department of Agriculture (DA), Department of Agrarian Reform (DAR), Department of Environment
and Natural Resources (DENR), and the University of the Philippines at Los Banos (UPLB) through
funding assistance in kind.

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SECTION 1. Scope and Coverage. The FSTP shall cover all upland areas where most farmers,
who grow corn and other crops for food, are still living in poverty and hunger. Priority are those
farmers living in 6th, 5th and 4th class municipalities particularly the municipalities in the ten priority
provinces under the Hunger Mitigation Program.

SECTION 2. Institutional Arrangements. For the operation and implementation of FSTP,
following shall be the arrangements between and among concerned national government agencies, the
University of the Philippines at Los Banos (UPLB), concerned State Universities and Colleges (SUCs),
and the Heads of various LGU leagues such as the League of Provinces, League of Cities, League of
Municipalities and Liga ng mga Barangay:

2.1 National Government Agencies (NGA). The DA shall take the lead in the
implementation of the program in partnership with DAR, DENR, DOST, DILG, SUCs,
LGUs, and NGOs. The DA’s Agriculture and Training Institute shall take charge of the
training of the Municipal Agricultural Officers and extension workers of the Local
Government Units including the farmers. There shall be coordinators at DA-RFUs level
to serve as Regional Secretariat. Following are the detailed duties and responsibilities of
the NGAs:

2.1.1 DA

a. Institutionalize, through the Agricultural Training Institute (ATI), the FSTP as one
of its extension approaches and ensure its successful implementation down to its
intended beneficiaries;

b. Include in its annual budget proposal, separate funding for the FSTP implementation
through the ATI;

c. Call on all national and local agencies for technical, policy, information, resource
assistance and support;

d. Initiate and conduct national and regional discussions and consultations relative
to the objectives, policies and program of action for the implementation of FSTP
throughout the country;

e. Initiate and enhance partnerships with private sectors, donor agencies and other
external bodies;

f. Ensure that FSTP implementation at the grassroots will be a joint undertaking
between the national government through ATI and the local government units
(LGUs) through a cost sharing scheme;

g. Facilitate the transfer of farming technologies developed by DA-BAR and other
R&D agencies to the FSTP beneficiaries;

h. Provide marketing and packaging assistance for farm products developed by trained
farmers.

i. Designate regional staff to serve as coordinators and Regional Secretariat.

2.1.2 DOST

a. Provide technical and financial support for R&D and technology transfer through
the development of appropriate production technologies and extension modalities
to be used by LGUs and their farmer-clientele;

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b. Accept R&D proposals which will go through a specific evaluation and approval
process on a competitive basis.

c. Provide technical assistance in the conduct of capability building and enhancement
of FSTP implementation in the program areas;

d. Link the Techno Gabay Program through the Farmers Information and Technology
Services (FITS) Centers with the FSTP; and

e. Through its regional offices, appoint R&D Coordinators for FSTP at the local level.

2.1.3 DAR

a. Assist in the identification of corn areas;

b. Provide technical and financial assistance in the conduct of capability building and
enhancement programs for the beneficiaries;

c. Assist the program beneficiaries in the commercialization and marketing of corn
products; and

d. Assist in the organizational strengthening of cooperatives.

2.1.4 DENR

a. Call upon all national and local agencies for technical, policy, information and
resource assistance and support;

b. Initiate and conduct national and regional discussions and consultations relating to
policies, objectives and programs of actions for sustainable upland development;

c. Review and translate specific recommendations into operational guidelines of
national concern, programs and initiatives, key areas and themes in coordination
with national and local agencies for sustainable upland development;

d. Initiate and enhance partnership and coordination with private sector groups,
donor agencies and other relevant external bodies;

e. Provide assistance to the program beneficiaries in the packaging and marketing of
products derived from the project areas including resource mobilization; and

f. Submit regular reports and updates to the Office of the President and other relevant
agencies.

2.1.5 DILG

a. Issue Memorandum Circular on the nationwide promotion of the Farmers-Scientist
Training Program (FSTP) at the local level;

b. Ensure proper coordination with the concerned local government units (LGUs) in
the implementation of FSTP; and

c. Provide technical assistance to the FSTP model LGUs in the documentation
of their success stories for social marketing and replication using the GO-FAR
documentation template.

d. Capacitate the model LGUs on the mechanics of the conduct of the Replication
Inception Workshop

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2.1.6 CHED-SUCs

a. Assist in the coordination and implementation of the program in their areas of
responsibility as defined in the FSTP Manual of Operation and Management;

b. Provide resource persons/experts to deliver lectures/demonstrations on topics
related to the program;

c. Provide support funds from their R & D and Extension units/programs; and

d. Direct SUCs to adopt FSTP in their agricultural extension program.

2.2 University of the Philippines Los Banos (UPLB). The UPLB, through the College

of Forestry and Natural Resources shall facilitate the enhancement of science and

extension curricula of FSTP in upland development while the UPLB, through the

College of Agriculture shall:

a. Act as the FSTP National Center for Operation and Management, which shall be
based at the Agricultural Systems Cluster’s office;

b. Assist in the training of FSTP Coordinators from the national down to regional and
provincial levels;

c. Provide technical expertise, and determine and exercise quality control of
technologies adopted and applied by the program and support staff to enhance the
operation of FSTP nationwide;

d. Assist in the transfer of farming technologies developed by UPLB through R & D
projects like newly developed corn (OPVs/hybrids), high yielding seeds of fruits and
vegetables, new organic fertilizers and other technologies;

e. Assist in the monitoring and evaluation of the accomplishments of the program; and

f. Tap the support of other colleges/institutes/centers at the local level with technologies/
expertise needed by FSTP.

SECTION 3. Participation of the Local Government Units. The Local Government Units
(LGUs) identified as program target areas, are encouraged to: 1) pass a resolution adopting the FSTP
as a support strategy for agricultural and economic development through their Local Sangunian;
2) conduct massive information campaign on the program at the barangay level through their
respective Provincial, City and Municipal Agriculturists; 3) provide support in the packaging and
marketing of the products of their trained farmers through agro-trade fairs and similar activities for
which the needed resources may be taken from their annual allocation for agriculture development; 4)
as participating LGUs at the provincial and municipal levels, designate FSTP coordinators who shall
comprise the FSTP Management Team of the province; and, 5) As model LGUs, organize the FSTP
Management Team to be responsible in the conduct of Replication Inception Workshop.

SECTION 4. Funding. Funds needed to carry out the provisions of this Executive Order shall
be sourced from and made part of the regular budget of the key agencies involved like DA, DAR, and
DENR. They shall provide not less than 2 percent of their annual budget allocated for RDF Programs
for FSTP Operation. The said amount shall be remitted to the FSTP National Center for the operation
and management at the UPLB College of Agriculture, through an appropriate legal instrument such
as a Memorandum of Agreement, and shall be deposited in a government bank at Los Banos, Laguna
(MOA). UPLB shall also provide at least PIM funding assistance in kind (manpower, facilities, etc.)
annually for FSTP operation.

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DA as the lead agency shall provide a supplemental budget of at least P200,000.00 annually to
each participating province and municipality involved in the program as counterpart fund to start and
sustain the operation of FSTR

Fund utilization/disbursements by any and all concerned agencies shall be subject to the usual
accounting and auditing rules and regulations.

SECTION 5. Separability Clause. Any portion or provision of this Executive Order that may be
declared by competent courts as unconstitutional shall not have the effect of nullifying other provisions
hereof, as long as such remaining provisions can still subsist and be given effect in their entirety.

SECTION 6. Repealing Clause. All rules and regulations, other issuance or parts thereof, which
are inconsistent with this Executive Order, are hereby repealed or modified accordingly.

SECTION 7. Effectivity Clause. The Executive Order shall take effect fifteen (15) days after its
publication in a national newspaper of general circulation.

DONE in the city of Manila, this 27th day of Eebruary, in the year of our Lord, Two Thousand
and Eight.

(Sgd.) GLORIA MACAPAGAL-ARROYO

President

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacahang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 701 - 830]. Manila:
Malacahang Records Office.

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MALACANANG

MANILA

EXECUTIVE ORDER NO. 711

ATTACHING THE BICOL RIVER BASIN WATER MANAGEMENT PROJECT
TO THE OFFICE OF THE PRESIDENT OF THE PHILIPPINES

WHEREAS, the Bicol River Basin and Watershed Management Project is a six-year project
funded by a World Bank loan;

WHEREAS, Bicol River Basin Areas, being on the typhoon path, inundation and flooding are
extensive and cause much damage to crops and properties in the area. It is aggravated by the tidal
backwater effect and storm surges that travel up the river system. It has also caused saline water
intrusion putting limitations on the use of water for irrigation;

WHEREAS, pollution of the lower basin from untreated sewage from urban areas and industrial
wastes and high incidence of water-borne diseases are among the perennial problems facing the Bicol
River Basin Areas;

WHEREAS, in order to closely monitor and oversee the efficient and effective implementation of
the Bicol River Basin Water Management Project, there is a need to attach the same to the Office of the
President of the Philippines;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Attachment. - The Bicol River Basin Water Management Project is hereby attached
to the Office of the President of the Philippines.

SECTION 2. Repealing Clause. - All executive issuances, rules and regulations or parts
thereof which are inconsistent with this Executive Order are hereby revoked, amended, or modified
accordingly.

SECTION 3. Effectivity. - This Executive Order shall take effect immediately.

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DONE in the City of Manila, this 5th day of March, in the year of Our Lord, Two Thousand and
Eight.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 701 - 830]. Manila:
Malacanang Records Office.

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MALACANAN PALACE
MANILA

EXECUTIVE ORDER NO. 712

DIRECTING THE IMMEDIATE REVIEW OF EXISTING ORDERS, RULES AND REGULATIONS
ISSUED BY LOCAL GOVERNMENT UNITS CONCERNING PUBLIC TRANSPORTATION,
INCLUDING THE GRANT OF FRANCHISES TO TRICYCLES, ESTABLISHMENT AND
OPERATION OF TRANSPORT TERMINALS, AUTHORITY TO ISSUE TRAFFIC CITATION
TICKETS, AND UNILATERAL REROUTING SCHEMES OF PUBLIC UTILITY
VEHICLES, AND FOR OTHER PURPOSES

WHEREAS, numerous transport organizations have complained about the establishment of
common transport terminals by the Local Government Units in their respective jurisdiction, the use of
their own traffic citation tickets known as Ordinance Violation Receipts (OVR), rerouting schemes in
violation of authorized routes as provided in their respective certificates of public convenience issued
by the LTFRB, and the enactment of various ordinances which result in additional cost to operators
and drivers, such as the mandatory purchase of stickers and driver’s identification cards;

WHEREAS, said transport organizations have also objected to the continuous issuance of new
franchises for the operation of tricycles and pedicabs despite the existence of too many units already
operating on the road and the unsynchronized truck ban resulting in the delay in the delivery of goods;

WHEREAS, the operations of public utility vehicles is imbued with paramount public interest,
such that factors that increase the cost of operations of public utility vehicles have a direct impact
on transport fares, hence local ordinances, programs and projects which require a fee should be
coordinated with the DOTC to ensure that public interest is not prejudiced;

WHEREAS, Section 5 (d) of Executive Order No. 125 as amended grants the Department of
Transportation and Communications (DOTC) the power and function to administer and enforce
all laws, rules and regulations in the field of transportation while Republic Act No. 4136, otherwise
known as the Land Transportation and Traffic Code grants unto the Land Transportation Office (LTO)
the power and duty to enforce traffic laws and issue the appropriate traffic citation tickets to erring
drivers as well as confiscate their driver’s license;

WHEREAS, the establishment and use of transport terminals by public utility vehicles with
franchises issued by the national government as well as the determination of their routes fall within the
jurisdiction of the DOTC/Land Transportation Franchising Regulatory Board (LTFRB);

WHEREAS, pursuant to Article 458 of the Local Government Code, the power of the Local
Government Units (LGUs) to regulate the operation of tricycles and to grant franchise is subject to the
guidelines prescribed by the DOTC;

WHEREAS, under Section 17, Article VII of the Constitution, the President has control of all
executive departments, bureaus and offices, and pursuant to Section 4 Article IX exercises general
supervision over all local government units;

NOW THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by Constitution, do hereby order:

SECTION 1. The Department of Transportation and Communications (DOTC) is hereby directed
to immediately review all existing orders, rules and regulations issued by Local Government Units

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(LGUs) concerning public transportation within their jurisdiction, including the grant of franchises to
tricycles, establishment and operation of transport terminals, authority to issue traffic citation tickets,
and unilateral rerouting schemes of public utility vehicles.

SECTION 2. Pending the review by the DOTC under Section 1 hereof of existing orders, rules
and regulations issued by LGUs, the Department of Interior and Local Government (DILG) shall,
subject to existing laws, advise LGUs to suspend (1) the establishment and operations of new and
existing transport terminals that charge fees and require compulsory use by public utility vehicles,
(2) the enforcement of re-routing schemes that violate the authorized routes as provided for in the
PUV franchises, (3) the issuance of new tricycle franchises while respecting those that have been
issued already, (4) the increase in local fees and charges applicable to public transportation, and
(5) the implementation of local programs, projects and ordinances that have impact on the cost of
operations of public utility vehicles without first coordinating and getting the approval of the DOTC to
ensure that these programs, projects and ordinances do not prejudice public interest by way of higher
transport fares.

SECTION 3. The DOTC shall establish a National Land Transport Policy Framework, which
shall facilitate the modernization of the land transport industry through the promotion of utility
services which are environment-friendly and shall provide assistance to the land transport sector
through lease-to-own programs, technical assistance, subsidies, and the encouragement of the use of
alternative fuels and/or renewable energy, among others.

SECTION 4. The Metropolitan Manila Development Authority (MMDA) shall implement a
single ticketing system throughout Metro Manila in accordance with Republic Act 7924.

SECTION 5. The DILG shall, subject to existing laws, establish and implement uniform truck
ban hours that shall be applicable to LGUs located in a common area nationwide.

SECTION 6. If any section or part of this Executive Order shall be declared unconstitutional or
illegal, the other sections or parts thereof shall not thereby be affected.

SECTION 7. All other orders, issuances or portions thereof, which are inconsistent with this
Executive Order are hereby revoked, amended or modified accordingly.

SECTION 8. This Executive Order shall take effect immediately following its publication in a
national newspaper of general circulation.

DONE in the City of Manila, this 11th day of March, in the year of our Lord, Two Thousand
Eight.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 701 - 830]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

EXECUTIVE ORDER NO. 713

STRENGTHENING THE AUTHORITY OF THE PRESIDENTIAL COUNCIL ON VALUES
FORMATION TOWARDS THE EFFECTIVE PURSUIT OF A JUST AND MORAL PHILIPPINE
SOCIETY, AMENDING EXECUTIVE ORDERS 314 AND, 347, AND FOR OTHER PURPOSES

WHEREAS, the Ad Hoc Council on Values Formation was created by virtue of Executive
Order (EO) No. 314, s. 2004, as amended by EO No. 347, s. 2004, to pursue the establishment and
institutionalization of just and moral governance;

WHEREAS, the establishment and institutionalization of just and moral governance is a long-
term undertaking founded on the establishment of a just and moral Philippine society;

WHEREAS, continuing efforts to establish just and moral governance sanctioned in previous
organizations need to be better coordinated to achieve optimal effect;

WHEREAS, the pursuit of just and moral governance in Philippine society is an undertaking that
requires an institutional response that is equipped with sufficient authority beyond that provided by
the ad hoc structure of existing council;

WHEREAS, Section 31, Chapter 10, Book III of EO 292 otherwise known as the Administrative
Code of 1987, vests the President with the continuing authority to reorganize the administrative
structure of the Office of the President;

NOW, THEREFORE, I, GLORIA-MACAPAGAL - ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Renaming the Ad Hoc Council on Values Formation. The Ad Hoc Council on
Values Formation is hereby renamed as the Presidential Council on Values Formation (PCVF).

SECTION 2. PCVF Composition and Structure. The President shall remain as PCVF Chairman
and the Secretary of Education as Vice Chairman. The President shall invite a maximum of nine
(9) leaders from the various religious groups of the country to be members of the PCVF. Members
invited as members of the PCVF shall retain their character as private citizens without government
remuneration.

The Council shall determine the appropriate structure for the efficient and effective performance
of its functions.

SECTION 3. PCVF Secretariat. The technical and administrative requirements of the PCVF shall
be serviced by a PCVF Secretariat, herein created, which shall be headed by a Secretary General to be
appointed by the President. The PCVF Secretary General shall have the rank of Assistant Secretary.

SECTION 4. PCVF Functions. The PCVF shall have the following functions:

1. Be the lead government agency which shall work and coordinate with the non-government
sector in pursuing the goal of establishing a strong foundation for just and moral governance;

2. Serve as the primary mechanism for effectively coordinating and orchestrating existing values
formation programs initiated during previous Administrations;

3. Receive, approve, prioritize and assist in the implementation of programs and projects
submitted to the Office of the President that seek to inculcate and strengthen moral values not

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just for the bureaucracy, but in Philippine society and its subsectors, such as but not limited
to the youth and Filipino families, consistent with the value formation aspirations of the
Administration;

4. Design, on its own, or with the cooperation of the non-governmental sector, and assist in the
implementation of programs and projects with aims similar to those programs and projects
mentioned in the previous paragraph;

5. Make recommendations to the President with regard to any duly supported and substantiated
information on incorrigible and undesirable government personnel. Any member of the
Council may appear as complainant in any case filed pursuant to such recommendations
before the appropriate agency;

6. Manage the Values Formation Fund created in Section 5 of this Executive Order; and

7. Perform other functions such as may be assigned by the President.

SECTION 5. Creation of the Values Formation Fund. The PCVF shall manage the Values
Formation Fund, herein created.

SECTION 6. Government Agency Support. All government departments, agencies and offices are
directed to extend full support for all activities of the PCVF.

SECTION 7. Funding. The Department of Budget and Management is hereby directed to release
one million pesos (P1,000,000.00) to cover the expenses of the operations of the PCVF and the PCVF
Secretariat. Funds for the operation of the PCVF and the PCVF Secretariat in succeeding years shall be
included in the budget of the Office of the President.

SECTION 8. Repealing Clause. All issuances, including Eos 314 and 347, s. 2004, rules and
regulations inconsistent with this order are hereby repealed, amended or modified accordingly

SECTION 9. Effectivity. This Executive Order shall take effect immediately

DONE in the City of Manila, this 12th day of March, in the year of Our Lord, Two Thousand
and Eight.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 701
Malacanang Records Office.

830]. Manila:

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MALACANANG

MANILA

EXECUTIVE ORDER NO. 714

ENHANCING THE GOVERNMENT’S INSTITUTIONAL MECHANISM FOR INTERFAITH
ACTIVITIES, RENAMING THE NATIONAL COMMITTEE ON INTERFAITH COOPERATION,

AND FOR OTHER PURPOSES

WHEREAS, the Philippine Constitution articulates a policy of peace, cooperation and amity with
all nations as well as maintain peace and order in the country for everyone to fully enjoy the blessings
of democracy;

WHEREAS, interfaith initiatives have been proven crucial to the promotion of peace, cooperation
and amity within and outside the country, as well as the development of moral, spiritual and intellectual
capacities for the upholding and enhancement of human dignity;

WHEREAS, Executive Order (EO) No. 626, s. 2007, created the National Committee on
Interfaith Cooperation (NCIC) to consolidate, rationalize, and ensure the consistency of the country’s
policies and position in various interfaith initiatives and forums in and outside the country;

WHEREAS, improvements in the present institutional arrangements are deemed necessary
to improve the governmental mechanism on interfaith activities as a tool for promoting peace and
upholding human dignity;

NOW, THEREFORE, I, GLORIA-MACAPAGAL - ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Renaming the NCIC. The NCIC is hereby renamed as the Council on Interfaith
Initiatives (CII) which shall be the highest policy-setting body for the country’s interfaith initiatives and
involvement both here and abroad.

SECTION 2. Restructuring the Cn. The CII shall have the Chairman of the Presidential Council
on Values Formation (PCVF) as Chairman, with the Secretary of Department of Foreign Affairs (DFA)
and the Presidential Adviser on the Peace Process as members.

SECTION 3. Presidential Committee on Interfaith Initiatives. To implement the policies set forth
by the CII, there is hereby created under the CII a Presidential Committee on Interfaith Initiatives
(PCII) that shall be composed of representatives, with ranks not lower than Assistant Secretary, from
the PCVF, the DFA and the Office of the Presidential Adviser on the Peace Process (OPAPP). The PCVF
representative shall serve as Chairman of the PCII.

SECTION 4. Functions of the PCII. The PCII shall have the following functions:

1. In coordination with all government agencies, local government units, the academe, and the
non-government sectors, formulate and submit for the approval of the CII, a Philippine Plan of
Action on Interfaith Cooperation (PPAIC);

2. With the OPAPP as lead, monitor and ensure that the goals and targets within the country
under the approved PPAIC are met;

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3. With the DFA as lead, represent the country and articulate Philippine interfaith policies and
position in different local and foreign forums;

4. Ensure that the Philippines is well-represented and is able to maintain its leadership and its
effective participation in the various international interfaith initiative and activities;

5. Receive, approve and prioritize program and project proposals consistent with the approved
PPAIC;

6. Make quarterly reports to the CII regarding the status of the PPAIC; and

7. Perform such other functions that the CII may assign.

SECTION 5. Government Agency Support. All government departments, agencies and offices are
directed to assist the PCII pursuant to the accomplishment of its functions. Such support includes the
establishment of interfaith desks and the designation of focal persons who shall be responsible for
undertaking PCITapproved interfaith-related programs and projects in their respective offices.

SECTION 6. Secretariat Support. The PCVF Secretariat shall provide staff support to the PCII.

SECTION 7. Eunding. The Department of Budget and Management is hereby directed to release
one million pesos (PI, 000, 000. 00) from the President’s Contingent Fund to cover the expenses of the
PCII for the year 2008. Funding requirements of the PCII in succeeding years shall be included in the
PCVF budget.

SECTION 8. Repealing Clause. All issuances, specifically EO 626, as well as rules and regulations
or parts thereof, inconsistent with this order are hereby repealed, amended or modified accordingly.

SECTION 9. Effectivity. This Executive Order shall take effect immediately

DONE in the City of Manila, this 12th day of March, in the year of Our Lord, Two Thousand
and Eight.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 701
Malacanang Records Office.

830]. Manila:

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 715
ESTABLISHING THE GAWAD CES AWARD

WHEREAS, Presidential Decree No. 1 created the Career Executive Service Board (CESB) to serve
as the governing body of the Career Executive Service and mandated it to promulgate rules, standards,
and procedures on the selection, classification, and career development of its members;

WHEREAS, the CESB implemented a recognition program in 2005 known as the “Search for
Outstanding Career Executive Officers”, which intended to pay tribute to outstanding Career Executive
Service Officers (CESOs) and Third Level Eligibles occupying CES positions whose exemplary
accomplishments or contributions lead to positive innovations in public management and contribute
to sustainable socio-economic developments that ultimately improve the quality of life of the Filipinos;

WHEREAS, it is imperative to highlight these outstanding accomplishments of third level career
executives to reward and encourage consistent and superior performance from them, and motivate
others in government to give their best to public service and promote excellence among their ranks;
and

WHEREAS, the awards shall be based on demonstrated exemplary performance and significant
contributions that concretize the ideals of the Career Executive Service of “bringing change where it is
needed, expertise where it is missing, and leadership where it is wanting”;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of
the Philippines, by virtue of the powers vested in me by law, do hereby declare the upgrading of the
Outstanding CEO Award and establish the GAWAD CES as an annual Presidential Awards program
for the Career Executive Service. The CESB shall issue the appropriate implementing guidelines for the
conferment of this Award.

DONE in the City of Manila, this 28th day of March, in the year of Our Lord, Two Thousand
and Eight.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 701 - 830]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

EXECUTIVE ORDER NO. 716

TRANSFORMING THE CLARK INTERNATIONAL AIRPORT CORPORATION (CIAC) INTO A
SUBSIDIARY OF THE BASES CONVERSION AND DEVELOPMENT AUTHORITY (BCDA), AND
AMENDING EXECUTIVE ORDER NO. 193 FOR THIS PURPOSE

WHEREAS, Executive Order No. 174, Series of 1994, designated the Clark Special Economic
Zone as the future site of a premier international airport;

WHEREAS, Executive Order No. 193, Series of 2003, established Clark International Airport
Corporation (CIAC), as a subsidiary of Clark Development Corporation (CDC), to operate and
manage the Clark Civil Aviation Complex, including the Diosdado Macapagal International Airport
(DMIA);

WHEREAS, Section 5 (f) of Republic Act 7227 grants BCDA the authority to construct, own,
lease, operate and maintain public utilities as well as infrastructure;

WHEREAS, CIAC was granted by the Clark Development Corporation a fifty (50) year franchise
to operate the Clark Civil Aviation Complex-Diosdado Macapagal International Airport (DMIA);

WHEREAS, the development of Clark to be a globally competitive international service and
logistics center in the Asia-Pacific Region has been declared as one of the 10-point legacy agenda of this
Administration;

WHEREAS, the Department of Transportation and Communications (DOTC) pursuant to
Executive Order No. 125, as amended by Executive Order No. 125-A Series of 1987, is the primary
policy, planning, programming, coordinating, implementing, regulating and administrative entity of
the Executive Branch of the government in the promotion, development and regulation of dependable
and coordinated networks of transportation and communication systems as well as in the fast, safe,
efficient and reliable postal transportation and communications services;

WHEREAS, there is a need to transform CIAC into a subsidiary of BCDA to ensure that the
development of the Clark Civil Aviation Complex-DMIA is aligned to the conversion program of
BCDA;

WHEREAS, there is a need to clarify the functions and jurisdiction of CDC and CIAC in order to
create synergy between the two corporations;

NOW, THEREFORE, I, GLORIA-MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. The Clark International Airport Corporation (CIAC) is hereby transformed from
a subsidiary of Clark Development Corporation (CDC) to a subsidiary of the Bases Conversion and
Development Authority (BCDA) to operate and manage the Clark Civil Aviation Complex (CCAC)
defined herein. The ownership of CIAC shall revert to the BCDA which shall be the recipient of the
dividends from CIAC.

SECTION 2. CIAC shall be subject to the policy supervision of the Department of Transportation
and Communications (DOTC).

SECTION 3. CDC shall remain the implementing arm of BCDA within the Clark Freeport Zone
and Clark Special Economic Zone, pursuant to Section 15 of RA 7227 and RA 9400.

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SECTION 4. Board of Directors. The powers of the CIAC shall be vested in and exercised by the
Board of Directors which shall be composed of not more than nine (9) members.

The Chairman and Members of the Board shall be nominated by the President of the Philippines.

No person shall be nominated as a member of the Board of CIAC unless he is a Filipino citizen, of
good moral character, and of recognized competence in relevant fields including but not limited to civil
aviation, economics, finance, law, engineering or management.

SECTION 5. CIAC shall only engage in aviation, aviation-related services, and aviation-related
logistics activities. All lease and business arrangements pertaining to the said services /activities shall
now be solely undertaken by CIAC.

SECTION 6. The Clark Civil Aviation Complex (CCAC) shall comprise the area of two thousand
two hundred (2,200) hectares, and shall be under the jurisdiction of the CIAC.

SECTION 7. The Clark Industrial Estate 5 (IE5) area measuring approximately 290 hectares is
hereby declared a logistics center.

The area of approximately 166.9 hectares within the IE5 area, which is bounded on the East
by the East Perimeter Wall; on the West by the Subic-Clark-Tarlac Expressway (SCTEX) Interchange;
and on the North by the SCTEX Logistics Interchange, shall be under the jurisdiction of CIAC. The
remaining areas shall be under the jurisdiction of CDC.

SECTION 8. The BCDA is hereby directed to prepare an implementing plan and take the
necessary steps towards effecting the transformation of CIAC, as BCDA’s subsidiary, pursuant to
Section 16 of RA No. 7227, to include all aspects that will govern the relationships among BCDA,
CDC and CIAC.

SECTION 9. All heads of government departments, bureaus, offices, agencies, government owned
and controlled corporations and instrumentalities are directed to fast-track the necessary approvals
and assists the CIAC to expedite the implementation of the various projects and activities for the
development of the Clark Civil Aviation Complex.

SECTION 10. All other orders, issuances or portions thereof, which are inconsistent with this
Executive Order are hereby revoked, amended or modified accordingly.

SECTION 11. This Executive Order shall take effect immediately.

DONE in the City of Manila, this day of April, in the year of Our Lord, Two Thousand and
Eight.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 701 - 830]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 717

DECLARING THE PASIG RIVER DREDGING AND REHABILITATION WORKS AS A
PRESIDENTIAL PRIORITY PROJECT

WHEREAS, the constitution of the Republic of the Philippines mandates the State to protect
and promote the right of the people to balanced ecology and sustainable economy in accord with the
rhythm and harmony of nature;

WHEREAS, the people living near or along the Pasig River have the right to live in an
environment that is free from pollution and unsanitary conditions;

WHEREAS, the Pasig River has fastly deteriorated over the past years due to unabated disposal
of human sewage from houses and industrial wastes from factories along its banks;

WHEREAS, the Pasig River is considered to be a vital link in the transport of goods and people
and its rehabilitation will be beneficial for the development of Metro Manila and the country, in
general;

WHEREAS, the Pasig River, being a natural navigational route and strategic location, remains
a viable alternative for decongesting the road network system of Metro Manila and its environs, thus
positively utilizing the River for increasing commerce and industry;

WHEREAS, the Pasig River, being the catchbasin of floodwaters from several tributaries from
upstream areas of the metropolis, is a very important conduit to mitigate the flooding in most areas of
Metro Manila, and that its dredging will increase the carrying capacity of the river;

NOW, THEREEORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

Section 1. Declaration - The Dredging and Rehabilitation of the Pasig River is a Presidential
Priority Project that has to be implemented immediately.

Section 2. Execution - The Pasig River Rehabilitation Commission (PRRC) under the Department
of Environment and Natural Resources (DENR), shall be the lead agency in the implementation of the
project and that, all Departments, government agencies and entities concerned, are hereby ordered to
provide full cooperation for the timely and smooth execution of the project.

Section 3. Repealing Clause - All orders, proclamations, rules, regulations, issuances or parts
thereof, which are inconsistent with any provision of this Executive Order are hereby repealed,
amended or modified accordingly.

Section 4. Effectivity - This Executive Order shall take effect immediately.

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Done in the City of Manila, this 28th day of March, in the year of Our Lord, Two Thousand and
Eight.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 701 - 830]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 718

AUTHORIZING THE PHASED IMPLEMENTATION OF THE RATIONALIZATION PLAN
OF THE NATIONAL IRRIGATION ADMINISTRATION AND THE AVAILMENT OF THE
SEPARATION INCENTIVE PACKAGE UNDER EXECUTIVE ORDER NO. 366

WHEREAS, Executive Order (EO) No. 366 (Directing a Strategic Review of the Operations
and Organizations of the Executive Branch and Providing Options and Incentives for Government
Employees Who May Be Affected by the Rationalization of the Functions and Agencies of the Executive
Branch) mandates all Departments/Agencies of the Executive Branch and their component units/
bureaus, including all corporations, boards, task forces, councils, commissions and all other agencies
attached to or under the administrative supervision of a Department to submit a Rationalization Plan
to the Department of Budget and Management (DBM) for its approval by virtue of the delegated
authority of the President;

WHEREAS, in compliance with said Executive Order, the National Irrigation Administration
(NIA) has formulated its own Rationalization Plan based on several parameters, among them, the
provisions of RA 3601, as amended by PD 552 and PD 1702, RA 8435 Agricultural and Fisheries
Modernization Act (AFMA), and RA 7606 (An Act Providing a Magna Carta of Small Farmers);

WHEREAS, said laws mandate the NIA to turnover in whole or in part national irrigation
systems to duly organized beneficiaries, in this case the Irrigators Associations (lAs) who are the direct
beneficiaries of completed irrigation projects/systems;

WHEREAS, RA No. 7160 or the Local Government Code of 1991 devolves the construction,
operation and maintenance of communal irrigation systems to Local Government Units (LGU) and
mandates the NIA to provide technical assistance to them relative to the development of communal
irrigation projects/systems;

WHEREAS, lAs have to be developed and empowered to take over the operation, repair and
maintenance of irrigation facilities, and the irrigation canals and facilities restored to good condition
before the turnover of the management, operation and maintenance can take place;

WHEREAS, given the factors mentioned above, the Rationalization of the NIA would necessitate
a phased implementation to ensure the progressive buildup of NIA’s infrastructure and organizational
capability to sustain irrigation management consistent with the modern realities of rural and
agricultural;

WHEREAS, in line with the objectives of the National Government to propel sustainable rural
development and ensure food security for the country, the NIA has obtained the support of the World
Bank for the financing of the Participatory Irrigation Development Program (PIDP), to reinforce
and complement locally-funded programs focusing on infrastructure investment and policy and
institutional innovation to achieve a holistic development of the public irrigation sector;

WHEREAS, the PIDP and the complementary locally-funded programs will enable the
synchronization of the implementation of the NIA Rationalization Program with the transfer of the
management, operation and maintenance responsibilities to the lAs, within a period of five (5) years;

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WHEREAS, EO 366 authorizes the grant of incentive benefits to those who may be adversely
affected by the Rationalization Program, which incentives may be availed of only within two (2)
months after approval of the Rationalization Plan;

NOW, THEREEORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order the following;

SECTION 1. Phased Implementation of the Rationalization Plan. The NIA Rationalization Plan
shall be implemented in phases for a period of five (5) years to commence upon approval of the NIA
Rationalization Plan, in lieu of the one-time implementation authorized under EO 366.

SECTION 2. Adoption of the Provisions of EO 366 and its Implementing Rules and Regulations
(IRR). The NIA shall strictly adopt all the provisions and guidelines of EO 366 and its IRR in the
preparation and implementation of its Rationalization Plan.

SECTION 3. Transition Plan. To ensure the smooth transition from the existing to the rationalized
structure, the NIA shall prepare a Transition Plan which shall form part of its Rationalization Plan.
The Transition Plan shall contain the targeted number of irrigation systems to be rehabilitated and
transferred yearly to the lAs during the five-year period and the corresponding number of personnel to
be affected by said transfer, which positions shall be declared co-terminus with PIDP or five (5) years,
whichever comes first.

SECTION 4. Effectivity of the Separation Incentive Benefits. The option to avail of the separation
incentive benefits provided under EO 366 and its IRR shall be available up to two (2) months after the
set annual timeframe for implementation as indicated in the approved Transition Plan. Project slippage,
if any, shall not be considered in prolonging the availability of the incentive benefits to the affected
personnel.

SECTION 5. Eunding. Funds for the payment of incentive benefits needed to implement the First
Phase of the NIA Rationalization Plan, as well as the payment of separation or retirement and terminal
leave benefits not covered by the Government Service Insurance System (GSIS), shall be provided by
the National Government in the form of subsidy, subject to the usual accounting and auditing rules
and regulations. Funds for the implementation of the Second to the Fifth Phases of its Rationalization
Plan shall be charged against peso counterpart funds appropriated for the PIDP in the General
Appropriations Act and/or from corporate funds.

Affected personnel, with the five-year phased implementation of the NIA Rationalization Plan,
shall receive the incentives authorized under EO 366 computed based on the basic salary of said
affected employees as of June 30, 2007, whether the same shall be funded by the National Government
or from other fund sources.

SECTION 6. Repealing Clause. All issuances, orders, rules and regulations or parts thereof that
are inconsistent with this EO are hereby revoked, amended or modified accordingly.

This Executive Order shall take effect immediately.

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DONE in the City of Manila, this 8th day of April, in the year of Our Lord Two Thousand and
Eight.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 701 - 830]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

EXECUTIVE ORDER NO. 719

COMPENSATION ADJUSTMENTS FOR GOVERNMENT PERSONNEL

WHEREAS, an efficient and effective civil service is crucial to the continuous development of our
country;

WHEREAS, the current compensation of government personnel at the administrative/sub-
professional and entry professional/technical levels are nearly comparable with those in the private
sector, but the gap widens at the higher professional and executive/top management levels, making the
latter very uncompetitive;

WHEREAS, the two recent compensation adjustments for government personnel effective July 1,
2006 and July 1, 2007, which accorded priority to those at the sub-professional and lower professional
levels in view of limited government funds, have partly uplifted their economic well-being;

WHEREAS, the salaries and base pay of civilian and military/uniformed personnel, respectively,
must be raised to address the gap in compensation between the private and public sectors for the
government to attract and retain competent public servants;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by Presidential Decree (P.D.) No. 985, P.D. No.
1597, Republic Act (R.A.) No. 6758, as amended by the Senate and House of Representatives Joint
Resolution No. 01 dated March 7, 1994, and R.A. No. 9498, the FY 2008 General Appropriations
Act, do hereby order:

Section 1. Compensation Adjustments for Government Personnel. - The Department of Budget
and Management (DBM) is hereby directed to implement the following compensation adjustments
effective July 1, 2008:

a. National Government Agencies (NGAs) Including State Universities and Colleges (SUCs)

i. Civilian Personnel - A ten percent (10%) increase over the basic monthly salaries as of
June 30, 2008 of civilian personnel whose positions are covered by the Compensation and
Position Classification System under R.A. No. 6758, as amended. The adjusted salaries
shall be in accordance with the Salary Schedule marked as Annex “A” of this Executive
Order.

ii. Military and Uniformed Personnel - A ten percent (10%) increase over the monthly base
pay as of June 30, 2008 of military personnel of the Armed Forces of the Philippines
and uniformed personnel under the Department of the Interior and Local Government,
Philippine Coast Guard and National Mapping and Resource Information Authority. The
adjusted base pay of military and uniformed personnel shall be in accordance with the Base
Pay Schedule marked as Annex “B” of this Executive Order.

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b. Government-Owned or Controlled Corporations (GOCCs)

A ten percent (10%) increase over the basic monthly salaries as of June 30, 2008 of GOCC
personnel whose positions are covered by the Compensation and Position Classification
System under R.A. No. 6758, as amended, subject to the availability of corporate funds.

c. Local Government Units (LGUs)

A ten percent (10%) increase over the basic monthly salaries as of June 30, 2008 of local
government personnel, subject to the availability of local government funds.

Section 2. Exclusion. - Personnel of government agencies which are exempted by law from the
coverage of R.A. No. 6758, as amended, are not entitled to the compensation adjustments authorized
herein.

Section 3. Fund Source. - The amounts necessary to implement the compensation adjustments
authorized herein shall be sourced, as follows:

a. For NGAs, including SUCs, the amount shall be charged against the appropriate fund source
under R.A. No. 9498, the FY 2008 General Appropriations Act. Thereafter, such amounts as
are needed shall be included in the annual General Appropriations Act.

b. For GOCCs, the funds required shall be charged against their respective corporate funds.
The use of funds for the purpose shall be subject to the approval of their respective governing
boards in accordance with applicable laws. GOCCs which do not have adequate or sufficient
funds to pay the salary adjustments authorized herein shall partially implement the adjusted
rates: Provided, That any partial implementation shall be at a uniform percentage increase for
all positions.

c. For LGUs, the funds required shall be charged against their respective local government funds.
The use of funds for the purpose shall be subject to the approval of their respective sanggunian
pursuant to R.A. No. 7160 and other relevant statutes. LGUs which do not have adequate or
sufficient funds to pay the salary adjustments authorized herein shall partially implement the
adjusted rates: Provided, That any partial implementation shall be at a uniform percentage
increase for all positions.

Section 4. Allowances and Benefits Based on a Percentage of the Basic Salary and Base Pay of
Government Personnel. - Except for the year-end bonus, longevity pay for military and uniformed
personnel, government counterpart to the Retirement and Life Insurance Premiums, PAG-I.B.I.G.
Contributions, PHILHEALTH Contributions and Employees Compensation Insurance Premiums, all
allowances and benefits which are computed at a percentage of salary or base pay shall not be increased
notwithstanding the ten percent (10%) salary and base pay increase authorized in this Executive Order.

Section 5. Applicability to Certain Constitutional Officials. - The salary increase authorized herein
for the President, Vice-President, Senators and Members of the House of Representatives shall take
effect only after the expiration of the respective terms of office of the incumbents pursuant to Section
10 of Article VI and Section 6 of Article VII of the 1987 Philippine Constitution.

Section 6. Implementing Rules and Regulations. - The DBM shall prepare and issue the necessary
rules and regulations to implement the provisions of this Executive Order.

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Section 7. Effectivity. - The compensation adjustments authorized herein shall take effect on July 1,
2008.

Manila, Philippines, 01 May 2008.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA

Executive Secretary

References: Annexes “A” and “B”
Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 701 - 830]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

EXECUTIVE ORDER NO. 720

ESTABLISHMENT OF A GOVERNMENT-NONGOVERNMENT PARTNERSHIP IN THE
ACCREDITATION OF DONEE INSTITUTIONS RELATIVE TO THE TAX DEDUCTIBILITY OF
CHARITABLE CONTRIBUTIONS UNDER SECTION 34(H) OF THE NATIONAL
INTERNAL REVENUE CODE, AS AMENDED

WHEREAS, it is the policy of the government to encourage public-private partnership in nation-
building, and in particular, to strengthen its role in the improvement of tax administration and taxpayer
compliance towards the attainment of fiscal stability and growth;

WHEREAS, Republic Act No. 8424 or the ‘“Tax Reform Act of 1997” amended the national
Internal Revenue Code, specifically. Title II Chapter VII Section 34(H) by providing that charitable
contributions or gifts made to accredited domestic corporation or associations organized and operated
exclusively for religious, charitable, scientific, youth and sports development, cultural or education
purposes or for the rehabilitation of veterans, or to social welfare institutions, or to nongovernment
organizations, in accordance with rules and regulations promulgated by the Secretary of Finance, upon
recommendation of the Commissioner of Internal Revenue, shall be allowed as deductible business
expenses for income tax purposes,

WHEREAS, to implement the foregoing provision whose underlying objective is to institute a tax
administration control tool in the form of an innovative mechanism which would help the Bureau of
Internal Revenue (BIR) to ensure that only legitimate donations are claimed as deductible expenses,
a system of accreditation of domestic corporations or associations or non-government organizations
(NGOs) to determine their qualifications as donee institutions has been established, initially, through a
Memorandum of Agreement between the Philippine Council for NGO Certification (PCNC) and the
Department of Finance (DOF) signed on January 29, 1998 and formally, through Revenue Regulations
No. 13-98 issued by the BIR on December 8, 1998;

WHEREAS, the government recognizes that mobilizing the nongovernment sector would
promote transparency and accountability in evaluating, accrediting and monitoring donee institutions,
being direct beneficiaries of contributions from donor institutions or individuals;

WHEREAS, the PCNC, which has been designated to establish and operationalize a system
of accreditation, is a private, voluntary, non-stock, non-profit corporation established by six of the
country’s largest national NGO networks, namely, the Caucus of Development NGO Networks, the
Philippine Business for Social Progress, the Association of Foundations, the Bishops-Businessmen
Conference for Human Development, the National Confederation of Cooperatives, and the National
Council for Social Development, whose objective is to encourage private sector participation in social
development;

WHEREAS, to further strengthen the accreditation system, the composition of the PCNC
Board of Trustees, which acts upon technical evaluation of an application for donee institution and
recommends its registration to the BIR as a qualified donee institution, should be broadened to include,
in addition to the DOF or BIR representative, representatives from other concerned government
agencies whose mandates or functions involve regulation or coordination or partnering with respective
NGOs;

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WHEREAS, there is a need to modify, accordingly, Executive Order No. 671 which was issued on
October 22, 2007;

NOW THEREEORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by Constitution, do hereby order and direct the
following:

SECTION 1. A stronger, more effective government-private sector partnership is herein instituted
within the accreditation system for donee institutions for purposes of the deductibility of charitable
contributions as a business expense for income tax purposes under Section 34(H) of the National
Internal Revenue Code (NIRC), as amended.

SECTION 2. The PCNC as Accrediting Entity and Its Obligations. The PCNC, duly registered
with the Securities and Exchange Commission, shall be the government’s partner in a system of
accreditation, to determine the qualification of domestic corporations or associations or NGOs
organized and operated exclusively for religious, charitable, scientific, youth and sports development,
cultural or educational purposes, or for the rehabilitation of veterans, or to NGOs for accreditation
as donee institutions. No corporations, associations, or NGOs however shall be processed for
accreditation by the PCNC unless it has secured a valid registration with the government agency that
exercises regulatory function over such corporation, association or NGO.

In doing so, the PCNC shall comply with the existing standards and guidelines set by the DOF,
through the BIR, relative to the accreditation of non-stock, non-profit corporations/NGOs as provided
for in Revenue Regulations No. 13-98. The PCNC shall also be guided by the standards and guidelines
of other government departments or agencies exercising regulatory functions over such corporations/
NGOs, such as the Department of Social Welfare and Development (DSWD).

In line with the mutual objectives of transparency and accountability in public-private partnership,
the PCNC shall submit to its Board of Trustees periodic reports of its operations, particularly, its
receipts and expenses incurred in the conduct of its mandate as the government accrediting entity.
As a non-stock, non-profit entity, the PCNC shall comply with existing rules governing tax-exempt
organizations such as the filing of an annual information return to the BIR.

SECTION 3. Composition of the PCNC Board of Trustees. In addition to its present membership
which includes the DOF or BIR representative, the PCNC Board of Trustees shall include the
Department of Social and Welfare Development (DSWD). Other government representative/s may
likewise sit in the PCNC Board of Directors, on a case-to-case basis and depending on the subject for
deliberation.

SECTION 4. Certification of Donee Institution Status. The responsibility of granting certification
for donee institution status remains veritably with the Department of Finance, specifically, the BIR,
which shall issue a Certificate of Registration as Qualified Donee Institution.

SECTION 5. Implementing Rules and Regulations. The DOF, through the BIR, in coordination
and in consultation with the concerned government agencies shall issue the necessary rules and
regulations to implement this Executive Order.

SECTION 6. Transitory Provision - All corporations, associations, NGOs that have been granted
qualified donee institution status, prior to the issuance of this Executive Order, shall remain as
Qualified Donee Institution until its expiration as stated in their respective Certificate of Registrations.

SECTION 7. Repealing Clause. Executive Order No. 671, issued on October 22, 2007, and all
executive orders and administrative issuances inconsistent with the provisions of this Order are hereby
deemed repealed, amended or modified accordingly.

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SECTION 8. Separability Clause. If any portion of this Order is declared unconstitutional, the
other provisions of this Order shall not be affected, and shall remain in force.

SECTION 9. Effectivity. This order shall take effect fifteen (15) days after publication in two (2)
newspapers of general circulation.

DONE in the City of Manila, this 11* day of April, in the year of our Lord, Two Thousand Eight.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacahang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 701 - 830]. Manila:
Malacahang Records Office.

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MALACANAN PALACE
MANILA

EXECUTIVE ORDER NO. 721

ENCOURAGING LARGE CORPORATIONS TO PROVIDE FOR
RICE REQUIREMENTS OF THEIR EMPLOYEES

WHEREAS, there are global clouds on the horizon that are driving up the price of oil and food,
particularly rice;

WHEREAS, on the issue of rice management, this is a global problem that this Administration
has seen coming, and has worked to head off for some time now;

WHEREAS, this Administration’s response is based on three fundamental needs:

1. To ensure supply of rice;

2. To make sure distribution of rice gets to the people who need it most, efficiently and cost-
effectively;

3. To be vigilant that unscrupulous vendors do not divert subsidized rice and sell it as commercial
rice.

NOW, THEREFORE, I, GLORIA M. ARROYO, President of the Republic of the Philippines, by
virtue of the powers vested in me by the Constitution and the law, do hereby order that:

1. For a period of time to be recommended by the National Food Authority, hereinafter referred
to as NFA, but in no case less then two years from the effectivity of this Order, the NFA shall
encourage large corporations to provide for rice requirements of their employees in either of
the following ways:

a. By engaging in the production of rice as herein-after provided;

b. By importing rice to meet requirements.

2. For purposes of this Order, large corporations shall refer to all corporations existing under
Philippines laws with at least five hundred (500) employees, provided that said corporations
report earnings over the last four years that will allow them to engage in the production or
importation or rice for their employees’ requirements without affecting their financial viability.
The NFA shall generate a list of the large corporations who shall be encouraged as stated
above.

3. Those corporations with existing landholdings determined to be suitable for rice production
by the NFA, and who decide to engage in such production shall be encouraged to engage in
such production within a period of time deemed desirable by the NFA.

Those without landholdings who decide to engage in such production may commence to do
so at any time, and for this purpose, all such corporations may lease public agricultural lands
or, subject to mutual agreement with the landowner, idle agricultural lands.

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Those corporations who decide to import rice shall signify to the NFA their intention to do so
and shall be governed in such importation by law.

For this purpose, large corporations may register with the NFA at any time during the
effectivity of this Order.

4. All importations undertaken under this Order shall be coursed through the NFA, and shall
be eligible for fiscal privileges within the authority of the NFA to provide. Flowever, the NFA
may charge reasonable fees for services rendered for such importation.

5. Any production or rice in excess of employees’ consumption requirements, resulting from rice
production activities which corporations shall engage in as encouraged by the NFA, shall be
certified to by the NFA and may be sold in local markets.

6. The NFA, upon consultation with the Department of Agriculture, the Department of Agrarian
Reform, the Department of Environment and Natural Resources, the Board of Investments,
and the Department of Finance, shall develop a package of fiscal or non-fiscal incentives as
may be allowed by law for the effective implementation of this Order.

7. Nothing in this Order shall prevent large corporations from tendering into any agreement or
other forms of combinations among themselves for the purpose of engaging in the production
and/or importation of rice, whenever the circumstances shall warrant.

8. Moral suasion, not compulsion, shall be applied on large corporations to carry out the
purposes of this Order.

9. This Order shall take effect immediately.

DONE in the City of Manila, this 2"“* day of May, in the year of Our Lord, two thousand and
eight.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacahang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 701
Malacahang Records Office.

830]. Manila:

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 721-A

AMENDING EXECUTIVE ORDER NO. 721 ENTITLED “ENCOURAGING LARGE
CORPORATIONS TO PROVIDE FOR RICE REQUIREMENTS OF THEIR EMPLOYEES”

WHEREAS, there are global clouds on the horizon that are driving up the price of oil and food,
particularly rice;

WHEREAS, the issue of rice management is a global concern that this Administration has seen
coming, and it has worked to head off for some time now;

WHEREAS, this Administration’s response to the global rice issue is based on ensuring the supply
of rice, making sure that distribution of rice gets to the people who need it most, efficiently and cost-
effectively, and being vigilant against unscrupulous vendors, who divert subsidized rice and sell it as
commercial rice.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the power vested in me by law, do hereby order:

SECTION 1. For a period to be recommended by the Department of Agriculture (DA), but in
no case less than two years from the effectivity of this Executive Order, large corporations shall be
encouraged to provide the rice requirements of their respective employees either by engaging in the
production of rice as hereafter provided, or by importing rice to meet the requirements.

SECTION 2. For purposes of this Executive Order, large corporations shall pertain to
corporations duly organized and existing under Philippine laws that have five hundred (500)
employees or more, provided that, said corporations have reported profit in the last four years before
this Executive Order, and they can engage in the production or importation of the rice requirements of
their employees without substantially affecting their financial viability.

The National Food Authority (NFA) is hereby ordered to generate a list of the large corporations,
as defined herein.

SECTION 3. Large corporations with existing landholdings determined to be suitable for rice
production by the DA that decide to engage in said production shall be encouraged to do so, within a
period to be determined by the DA.

Large corporations without landholdings for rice production that decide to engage in rice
production, pursuant to this Executive Order, may engage in rice production and may lease public
agricultural lands or idle agricultural lands, subject to the agreement of the landowner thereof.

Large corporations that decide to import rice shall signify their intention to do so with the NFA
and shall be governed in such importation by law.

For purposes of this Section, large corporations may register with the NFA at any time during the
effectivity of this Executive Order.

SECTION 4. Rice importations pursuant to this Executive Order shall be coursed through the
NFA and shall be eligible for fiscal privileges, within the authority of the NFA to provide. However, the
NFA may charge reasonable fees for services rendered for such importation.

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SECTION 5. Any rice production, pursuant to this Executive Order, which is in excess of the
consumption requirements of the employees of a subject large corporation, may be sold in the local
markets.

SECTION 6. The DA, upon consultation with the Department of Agrarian Reform, the
Department of Environment and Natural Resources, the Board of Investments, and the Department
of Finance, shall develop a package of fiscal or non-fiscal incentives, as may be allowed by law, for the
effective implementation of this Executive Order.

SECTION 7. Large corporations may enter into any agreement or form associations for the
purpose of engaging in rice production pursuant to this Executive Order.

SECTION 8. The DA shall formulate and issue Implementing Rules and Regulations (IRR) of this
Executive Order in consultation with concerned government agencies and the private sector.

SECTION 9. Moral suasion and not compulsion shall be applied to the large corporations in
carrying out the purposes of this Executive Order.

SECTION 10. Executive Order No. 721 is hereby amended and superseded by this Executive
Order.

SECTION 11. This Executive Order shall take effect immediately after publication in a
newspaper of general circulation.

Done in the City of Manila this day of November, in the year of our Lord, Two Thousand and
Eight.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 701 - 830]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 722

EXTENDING FURTHER THE DURATION OF OPERATION OF THE PRESIDENTIAL MIDDLE
EAST PREPAREDNESS COMMITTEE (PMEPC) TO 30 SEPTEMBER 2008

I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, by virtue of the powers vested
in me by law, , do hereby order, in view of volatile political situation in the Middle East, the extension
of the duration of the operations of the Presidential Middle East Preparedness Committee (PMEPC) to
30 September 2008 or unless otherwise directed by the President.

The Committee shall be provided with a funding allocation of Three Million Pesos
(P3, 000, 000. 00) for its administrative and operational expenses to be taken from the President’s
Contingency Fund. Additional financial requirements that may be needed by the Committee shall
be sourced out by the Department of Budget and Management (DBM) from available funds of the
concerned PMEPC member-agencies, subject to the usual government accounting and auditing rules
and regulations.

All other rules, regulations and issuances or parts thereof which are inconsistent with this Order
are hereby repealed or modified accordingly.

This Order shall take effect immediately.

Done in the City of Manila, this 9th day of May, in the year of our Lord, Two Thousand and
Eight.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 701
Malacanang Records Office.

830]. Manila:

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 723

RELEASE OF THE AMOUNT OF TWELVE BILLION FIVE HUNDRED SEVENTY-SIX MILLION
NINE HUNDRED THIRTY-EIGHT THOUSAND PESOS (P12, 576, 938, 000.00) FOR THE
INTERNAL REVENUE ALLOTMENT DIFFERENCE DUE TO THE REENACTMENT OF THE
GENERAL APPROPRIATIONS ACTS IN FISCAL YEARS 2001 AND 2004

WHEREAS, Section 6 of Article X of the Constitution and Section 284 of Republic Act (R.A.)
No. 7160 or the Local Government Code of 1991 mandates that LGUs shall have a share in the
national internal revenue taxes which shall be automatically released to them;

WHEREAS, due to the reenactment of the FYs 2000 and 2003 General Appropriations Acts in
FYs 2001 and 2004, respectively, a total amount of P12,576,938,000.00 in Internal Revenue Allotment
(IRA) shares of LGUs was not released;

WHEREAS, the unreleased IRA amount corresponds to the difference between the National
Expenditure Program levels computed according to the formula prescribed in R.A. No. 7160 and the
appropriations for IRA under the reenacted budgets for FYs 2001 and 2004;

WHEREAS, in accordance with the above constitutional and statutory mandates, the IRA
differential of P12,576, 938,000. 00 can be released without disrupting the fiscal and deficit targets of
the country and thereby maintain macroeconomic stability.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by the powers vested in me by law, do hereby order:

SECTION 1. RELEASE OF THE IRA DIFFERENTIAL IN CYS 2001 AND 2004. The

Departments of Finance, Budget and Management and Interior of Local Government shall take the
necessary steps to ensure that the LGUs get their respective shares from the P12, 576,938, 000. 00
unreleased IRA differential for FYs 2001 and 2004 either on installment basis for a period of seven (7)
years starting FY 2009 up to FY 2015, or avail in advance their respective shares from the unreleased
IRA through a monetization program.

SECTION 2, IRA MONETIZATION PROGRAM. The IRA Monetization Program (IMP) will
give LGUs the option to collect in advance from the trustee banks their respective shares from the
P12.5 billion IRA differential at a discounted value, net of interest and other charges.

SECTION 3. RESPONSIBILITIES.

A. Department of Budget and Management. The DBM shall:

1. Determine the share of each LGU from the P12, 576,938,000. 00 unreleased IRA differential
on the basis of the formula prescribed in R.A. No. 7160 and issue the corresponding Notice
of Payment Schedule (NPS) to inform the LGUs of their share and the schedule of payment.

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2. Compute the LGU shares based on the status of the LGUs existing in FYs 2001 and 2004.
Conversions or creations of LGUs after FYs 2001 and 2004 respectively shall not be
considered in the computation for the said years.

B. Department of Finance. The DOF shall:

1. Provide the confirmation letter of the National Government to acknowledge that the
P12, 576, 938, 000. 00 constitutes an obligation of the Republic of the Philippines.

2. Favorably endorse to the Bangko Sentral ng Pilipinas and other regulatory agencies, as the
case may be, the application to secure the necessary financial features for the investment
certificates that may be issued to improve the net proceeds to the beneficiaries.

3. Open the necessary Special Trust with the trustee banks.

4. Make available the facilities of the Bureau of the Treasury, including but not limited to,
the Registry of Scripless Securities (RoSS), the Automated Debt Auction Processing System
(ADAPS), and such other facilities as may be required and necessary for the auctioning
process and the implementation of the IRA Monetization Program.

C. Department of the Interior and Local Government. The DILG shall provide assistance to the
LGUs that will participate in the IRA Monetization Program and shall consolidate and submit
to the DOF the relevant Subscription Agreement, if any, and the corresponding Sanggunian
Resolution executed by the LGUs concerned that will state, among others, the Special Purpose
Trust (SPT) to be constituted and designated, the authority of head of the LGU to bind the
LGU for the IMP participation; and the trustee bank that will receive the proceeds of the
monetized IRA.

D. Government Financial Institutions. The government financial institutions (GFIs) designated
for this undertaking shall serve as trustee banks for purposes of receiving the proceeds of
monetized IRA shares of LGUs. A Special Trust Account shall be established by the LGUs
with the GFIs for the purpose. All transactions relative to the IRA Monetization Program shall
be undertaken in accordance with the existing accounting, auditing and budgeting rules and
regulations. A list of LGUs that availed of the IMP shall be submitted to the DBM.

E. Local Government Units. LGUs that will participate in the IMP shall accomplish and submit
the pertinent documents required herein. The utilization of funds shall be in accordance with
accounting, auditing, budgeting and procurement rules and regulations.

F. Commission on Audit. The GOA shall provide guidelines in the recording of the obligation in
the books of account of the National Government.

SECTION 4. SEPARABILITY CLAUSE. If any section or provision of this Executive Order shall
be declared unconstitutional or invalid, the other sections or provisions not affected thereby shall
remain in full force and effect.

SECTION 5. EEEECTIVITY. This Executive Order shall take effect immediately upon publication
in a national newspaper of general circulation.

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DONE in the City of Manila, this 12th day of MAY, in the year of our Lord, Two Thousand and
Eight.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 701 - 830]. Manila:
Malacanang Records Office.

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MALACANAN PALACE
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 724

REORGANIZING CERTAIN FUNCTIONS WITHIN THE BUREAU OF CUSTOMS TO MAKE IT
MORE RESPONSIVE TO THE INTENSIFIED ANTI-SMUGGLING
THRUSTS OF THE GOVERNMENT

WHEREAS, the present set up in the Bureau of Customs (BOC), where the prosecution function
is being exercised by various offices, units, divisions as well as ad hoc bodies in the said bureau,
diminishes the effectivity of the anti-smuggling drive/campaign of the government;

WHEREAS, to ensure success in the anti-smuggling effort of the government, there is need to
transfer, consolidate and reorganize the prosecution functions of various divisions, offices and/or units
to the Prosecution and Litigation Division (PLD), Legal Service (LS) of the BOC;

WHEREAS, Section 31, Chapter 10, Title III, Book III of EO 292, otherwise known as the
Administrative Code of 1987, expressly grants the President the continuing authority to reorganize the
executive branch of the government.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Affected Offices. This Order covers the Investigation and Prosecution Division
(IPD), Customs Intelligence and Investigation Service (CHS), Internal Inquiry and Prosecution Division
(IIPD-CIIS), certain offices or units under the Office of the Deputy Commissioner for Intelligence
and Enforcement Group, Director of Enforcement and Security Services (ESS), the Prosecution and
Litigation Division (PLD), Legal Service (LS) and the Office of the Commissioner (OCOM). Unless
otherwise specifically mentioned in this Order, no other authority, function or task organic to those
above mentioned offices shall be affected.

SEC. 2. Transfer of Functions. The following functions are hereby transferred to the
corresponding Offices indicated opposite their names:

NAME OF OFFICE/FUNCTION

FROM

1. Prosecution Function (Criminal/

IPD/CIIS

PLD-LS

Administrative)

IIPD/CIIS

ESS

2. Review, Evaluation and Processing of Claims

RRD/LS

OCOM

for Rewards Function

SEC. 3. Operational Provisions. The following provisions shall be observed to promote the
smooth transfer of functions:

1. IIPD/IPD and other Offices/Units. All case folders, files and documents of IIPD/IPD and of
other Offices/Units shall be transferred to the PLD-LS upon proper turn-over thereof. As an

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initial step, all case folders, files and/or records shall be inventoried, docketed and cataloged
before the same are turned-over to the Director, LS.

2. Review and Processing of Reward Claims.

a. The Commissioner of Customs shall issue the corresponding order constituting the Rewards

Committee in the OCOM which shall have the following functions:

i. Maintain the Informant’s Logbook. The Informant’s Logbook is hereby ordered
transferred from the CHS to the Committee on Rewards.

ii. Receive Information. The Committee on Rewards shall receive and safe-keep all
informant’s affidavits of information and all other relevant documents required in the
processing of reward claims.

iii. Process claims for rewards. The Committee on rewards shall process, discuss, deliberate,
evaluate and recommend to the Commissioner of Customs all claims for rewards,
including the issue of preference, amounts and all issues relative to claims of rewards.

iv. Study and propose measures to automate claims for rewards including the BOC-DOF
interface on reward matters.

V. Organize a Secretariat which shall carry on the daily business of the Committee on
Rewards.

SEC. 4. Budgetary Requirements. (1) The amount of Php2, 000,000. 00 is hereby allocated from
the funds of the Bureau of Customs as a one-time expense for the inventory, cataloguing and eventual
transfer of case folders, files and other documents of the IIPD, IPD and other Offices, units or ad hoc
bodies to the PLD-LS.

(2) The amount of PhP5,000,000.00 is hereby allocated from the funds of the Bureau of Customs
as initial fund for the establishment of the Committee on Rewards to cover expenses such as but not
limited to setting up of office and other costs related thereto including repair of office space, office
furniture and furnishings, air-conditioning machines, photocopiers, personal computers, computer
peripherals and other equipment; and for the day to day functions of the office such as office supplies
and consumables; and for the general expenses of the Committee on Rewards such as traveling and
other expenses.

Thereafter, such funds as may be necessary for the functions of the Committee shall be included in
the annual appropriations of the Bureau of Customs.

SEC. 5. Separability Clause. If any provision of this Executive Order is declared invalid or
unconstitutional, the provisions not affected thereby shall continue in force and effect.

SEC. 6. Repeal. All executive orders, rule, regulations and other issuances or parts thereof, which
are inconsistent with the provisions of this Order, are hereby revoked or modified accordingly.

SEC. 7. Administrative Sanctions. Failure to follow the directives of this Executive Order within
30 days from effectivity thereof shall subject concerned officials to administrative sanctions pursuant
to existing laws, rules and regulations.

SEC. 8. Effectivity Clause. This Order shall take effect fifteen (15) days following its complete
publication in a national newspaper of general circulation.

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DONE in the City of Manila this 16th day of May, in the year of our Lord Two Thousand and
Eight.

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

(Sgd.) GLORIA MACAPAGAL-ARROYO

Office of the President of the Philippines. (2008). [Executive Order Nos.: 701 - 830]. Manila:
Malacanang Records Office.

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MALACANAN PALACE
MANILA

EXECUTIVE ORDER NO. 725

DIRECTING AND AUTHORIZING THE SECRETARY OF AGRICULTURE TO MANAGE
AND COORDINATE ALL EFFORTS OF RELEVANT AGENCIES OF THE EXECUTIVE
DEPARTMENT, GOVERNMENT FINANCIAL INSTITUTIONS AND GOVERNMENT OWNED
AND CONTROLLED CORPORATIONS TO ADOPT MEASURES TO MEET THE CHALLENGE
OF THE CURRENT WORLD RICE SUPPLY SHORTAGE

WHEREAS, there are global clouds on the horizon that are driving up the price of oil and food,
particularly rice;

WHEREAS, the first obligation and commitment of government is to put food on the table in the
Philippines;

WHEREAS, the rise of agricultural prices is a global problem and all must work together to
resolve it and to help prevent any global food crisis in the longer term;

WHEREAS, there is an urgent need to intensify efforts to carry out the aforementioned policy;

WHEREAS, there is a need to manage and coordinate relevant agencies of the Executive
Department, government financial institutions and government owned and controlled corporations in
the implementation of measures aimed at addressing challenges related to rice prices and supply;

NOW THEREFORE I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by the powers vested in me by law, do hereby order:

SECTION 1. SECRETARY OF AGRICULTURE. - The Secretary of Agriculture is hereby
mandated to coordinate and oversee all government efforts on the issue of rice management.

SECTION 2. RICE MANAGEMENT. - The response to the issue of rice management shall be
based on three fundamental needs:

1. To ensure supply,

2. To make sure distribution of rice gets to the people who need it most, efficiently and cost-
effectively; and

3. To be vigilant that unscrupulous traders do not price gouge and exploit the situation.

SECTION 3. SUPPLY. - To ensure supply, the Secretary of Agriculture is hereby mandated to
coordinate and oversee the following government efforts:

1. Reaching out to Thailand, Vietnam and others to increase the national security stock, and seek
the advise of those with actual experience and specialization in the commodity and its free
market;

2. Implementation of the Philippine Productivity Rice Master Plan, copy of which is hereto
attached as Annex A, and which is hereby approved for immediate implementation;

3. Adoption and implementation by the Land Bank of the Philippines and other Government
Financial Institutions (GFIs) such as but not limited to the Development Bank of the Philippines,
the Government Owned and Controlled Corporations (GOCCs) such as but not limited to

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the People’s Credit and Finance Corporation, the National Development Corporation and
Livecor. To this end, the Land Bank and other GFIs shall adopt the necessary board resolutions
authorizing the Secretary of Agriculture or his specifically designated representative to provide
on their behalf credit facilities to qualified farmers and farmers’ organizations, which credit
facilities shall be used to increase and improve rice production;

4. Entering into a Memorandum of Agreement with the local government units, the GFIs, the
countryside financial institutions and other private organizations in order to address the
current rice supply shortage and to arrest the effects of increases in the price of oil-based
inputs through a rationalized financing scheme that will be made available to the farmers and
farmers’ cooperatives for the purchase of inputs at the lowest possible cost.

SECTION 4. DISTRIBUTION. - To make sure distribution of rice gets to the people who need it
most, efficiently and cost-effectively, the Secretary of Agriculture is hereby mandated to coordinate and
oversee the following, government efforts:

1. Distribution through churches and faith organizations;

2. Distribution through schools;

3. Distribution through the government’s own network.

SECTION 5. ENEORCEMENT. - To be vigilant against unscrupulous traders who price
gouge and exploit the situation, the Secretary of Agriculture shall be assisted by a Task Force on Rice
Enforcement. Anyone caught robbing the people of rice shall be sanctioned to the full extent of the law.

SECTION 6. EUNDING. - The relevant agencies of the Executive Department, GOCCs and GFIs
shall share the costs of rice management, according to their respective mandates and roles, and/or as
may be agreed among themselves.

SECTION 7. EEEECTTVITY. - This Order shall take effect immediately.

DONE in the City of Manila, this 15* day of May, in the Year of Our Lord, Two Thousand and
Eight.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 701 - 830]. Manila:
Malacanang Records Office.

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OFFICE OF THE PRESIDENT
OF THE PHILIPPINES
MALACANANG

EXECUTIVE ORDER NO. 726

TRANSFERRING THE NATIONAL COMMISSION ON INDIGENOUS PEOPLES FROM THE
DEPARTMENT OF AGRARIAN REFORM TO THE DEPARTMENT
OF ENVIRONMENT AND NATURAL RESOURCES

WHEREAS, it is the duty of the State to protect the rights of indigenous cultural communities
and indigenous peoples to their ancestral domains to ensure their economic, social and cultural well
being and to recognize the applicability of customary laws governing property rights of relations in
determining the ownership and extent of ancestral domain;

WHEREAS, the State recognizes, respects and protects the rights of indigenous cultural
communities and indigenous peoples to preserve and develop their cultures, traditions and institutions;

WHEREAS, National Commission On Indigenous Peoples was created by Republic Act No. 8371
entitled AN ACT TO RECOGNIZE, PROTECT AND PROMOTE THE RIGHTS OF INDIGENOUS
CULTURAL COMMUNITIES/ INDIGENOUS PEOPLES, CREATING THE NATIONAL
COMMISSION ON INDIGENOUS PEOPLES, ESTABLISHING IMPLEMENTING MECHANISMS,
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES;

WHEREAS, the National Commission on Indigenous Peoples was placed under the Department
of Agrarian Reform by Executive Order No. 364 entitled TRANSFORMING THE DEPARTMENT
OF AGRARIAN REFORM INTO THE DEPARTMENT OF LAND REFORM on September 27,
2004;

WHEREAS, there is a continuing need to remain vigilant in protecting the rights and guaranteeing
the respect for the cultural integrity of indigenous cultural communities and indigenous peoples, and
ensuring that all members of indigenous cultural communities and indigenous peoples benefit on an
equal footing from the rights and opportunities which national laws and regulations grant to other
members of the population;

WHEREAS, the Department of Environment and Natural Resources is mandated to be the
primary agency responsible for the conservation, management, development, and proper use of the
country’s environment and natural resources and one of its objectives is to conserve specific terrestrial
and marine areas representative of the Philippine natural and cultural heritage for present and future
generations and one of its powers is the preservation of cultural and natural heritage through wildlife
conservation and segregation of national parks and other protected areas;

NOW, THEREFORE, I, GLORIA-MACAPAGAL - ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

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SECTION 1. Placement under the Department of Environment and Natural Resources. The
National Commission on Indigenous Peoples is hereby placed under the Department of Environment
and Natural Resources

SECTION 2. Effectivity. This Executive Order shall take effect immediately.

DONE in the City of Manila, this 23rd day of May, in the year of Our Lord, Two Thousand and
Eight.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 701 - 830]. Manila:
Malacanang Records Office.

451

MESSAGES OE THE PRESIDENT

ARROYO I Volume 4

MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 727

UPGRADING THE PORTS OF LIMAY AND MARPVELES AS A PRINCIPAL PORT OF ENTRY
PURSUANT TO SECTION 702 OF THE TARIFF AND CUSTOMS CODE
OF THE PHILIPPINES, AS AMENDED

WHEREAS, the upgrading of the Ports of Limay and Mariveles into a Customs Principal Port
of Entry will complement efforts to accelerate further not just the economic growth but the total
development of Bataan and its outlaying Special Economic Zone;

WHEREAS, upgrading the status of the Ports of Limay and Mariveles into a principal port of
entry will enable said port to avail of the manpower complement and other resources from national
government agencies such as the Bureau of Customs, thereby hastening infrastructure and systems
development which will result in the port gaining more investors and other locators;

WHEREAS, the expansion of economic activity within the port requires that the Port of Limay be
accorded the status as a principal port of entry;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

Section 1. Upgrading of the Port of Limay and Mariveles opening them as a Principal Port of
Entry. - The present Ports of Limay and Mariveles are hereby opened and declared as a principal port
of entry to be known as the District Port of Limay and Mariveles.

Section 2. Authority of the Commissioner of Customs to define the jurisdictional limits of the
Collection district affected. - The Commissioner of Customs, subject to the approval of the Secretary
of Finance pursuant to Section 701 of the Tariff and Customs Code of the Philippines (TCCP), as
amended, is hereby authorized to redefine the jurisdictional boundaries of the Port of Manila and
to delineate the jurisdictional limits of the new principal port of entry which shall become Customs
Collection District No. XVI to be known as the District Port of Limay and Mariveles.

Collection District XVI of the District Port of Limay and Mariveles shall have jurisdiction over
the entire province of Bataan and such other areas as shall be added by the Commissioner of Customs,
excluding the area covered by the SBMA-Bataan created under Republic Act No. 7227, Proclamation
No. 984 and Executive Order No. 381 and other laws appurtenant thereto. It shall have the Port of
Mariveles as its Sub-port.

Section 3. Authority of the Commissioner of Customs to designate the officials of the port of
Limay and Mariveles. - The new Collection District No. XVI also known as District Port of Limay
and Mariveles, shall be headed by a Customs Collector V, to be assisted by such Deputy Collectors
of Customs as may be determined and designated by the Commissioner of Customs. The Sub-port of
Mariveles under the District Port of Limay and Mariveles shall be likewise headed by a Port Collector,
to be assisted by such Deputy Collectors of Customs as may be determined and designated by the
Commissioner of Customs.

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Section 4. Implementing Authority. - Subject to the approval of the Secretary of Finance, the
Commissioner of Customs is hereby authorized to determine the personnel requirements of the
District Port of Limay and Mariveles, taking into account the principles of economy, efficiency and
effectiveness. He may, subject to applicable Civil Service rules and regulations, issue the needed orders
to effect the transfer or movement or personnel from any organizational unit of the Bureau to the
Port of Limay and Mariveles, or create new positions therefor. For this purpose the new personnel
complement shall be deemed integrated in the Rationalization Plan of the Bureau.

Section 5. Appropriations. - Funds for the initial operations of the District Port of Limay
and Mariveles shall be drawn from the available funds of the Bureau of Customs and subsequent
appropriations shall be incorporated into its budget proposals, subject to existing budgeting,
accounting and auditing laws and procedures.

Section 6. Effectivity. - This Executive Order shall take effect fifteen (15) days following the
completion of its publication in the Official Gazette or in a newspaper of general circulation.

Done in the City of Manila, this 26th day of May, in the year of our Lord, Two Thousand and
Eight.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 701 - 830]. Manila:
Malacanang Records Office.

453

MESSAGES OE THE PRESIDENT

ARROYO I Volume 4

MALACANANG

MANILA

EXECUTIVE ORDER NO. 728

ENSURING TOP-LEVEL ATTENTION AND PRIORITY ACTION ON
FOOD AND ENERGY NEEDS OF THE NATION

WHEREAS, it is the policy of the government to ensure that every Filipino shall have food on
their table especially the poorer sector of the society;

WHEREAS, parallel with the programs on food security, the government is also giving equal
importance to the energy needs of the nation, including power sector reforms;

WHEREAS, there is a need to create a council that will give top-level attention and priority action
on food and energy needs of the nation;

NOW, THEREFORE, I, GLORIA MACAPAGAL- ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by the Constitution and the law, do hereby order the
following:

Section 1. - There is hereby created the National Food and Energy Council (NFEC or Council).

Section 2. - The NFEC is tasked with assessing the food and energy situation and prospects, and
formulating, coordinating, undertaking, monitoring and/or adjusting major national long-term policies,
programs and project as measures to ensure adequate, competitively priced supplies of food and energy
for the nation, especially the very poor.

Section 3. - The Council shall include the President as Chair, the NEDA Secretary as Vice-Chair,
the Secretaries of DA, DENR, DOE, NAPC, NSC and the NPC, PNOC, NFA heads as members.

Section 4. - The heads of relevant committees in Congress and representatives of sectoral groups,
academe and other non-government organizations, may be invited as full members or observers.

Section 5. - The Council shall, among its other functions, make a five-year projection of supply,
demand and prices of essential foodstuffs and energy sources, to be adjusted periodically, and with the
targeted impact of policy actions incorporated in the forecasts.

Section 6. - The Council shall advise the President and Congress if and when the exercise of
emergency presidential powers shall be required to address food and energy problems.

Section 7. - The Council on Climate Change, which will discuss similar issues and whose priority
will need to be reconciled with food and energy, is hereby absorbed by the NFEC.

SECTION 8. - All other rules, regulations and issuances or parts thereof which are inconsistent
with this Executive Order are hereby repealed or modified accordingly.

SECTION 9. - This Executive Order shall take effect immediately.

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Done in the City of Manila this 2nd day of June, in the year of Our Lord, Two Thousand and

Eight.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 701 - 830]. Manila:
Malacanang Records Office.

455

MESSAGES OE THE PRESIDENT

ARROYO I Volume 4

MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 729

ADDING THE DIRECTOR GENERAL OF THE TECHNICAL EDUCATION AND SKILLS
DEVELOPMENT AUTHORITY, OR A DULY DESIGNATED REPRESENTATIVE, AS
ADDITIONAL MEMBER OF THE TEACHER EDUCATION COUNCIL

WHEREAS, the Presidential Task Force to Assess, Plan and Monitor the Entire Educational
System was created pursuant to Executive Order (EO) No. 652 dated August 21, 2007;

WHEREAS, the need to strengthen existing mechanisms to complement the role of the Presidential
Task Force for Education is necessary in synchronizing and harmonizing the entire education system;

WHEREAS, the Teacher Education Council (TEC) was created pursuant to Republic Act (RA)
No. 7784, while the Technical Education and Skills Development Authority (TESDA) was created
pursuant to RA No. 7796;

WHEREAS, there is a need to include the technical-vocational sector of education to the TEC and
to educate and train technical-vocational teachers of unquestionable integrity and competence;

WHEREAS, Section 19, Book III, Title I, Chapter 7 and Section 31, Book III, Title III, Chapter 10
of EO No. 292, otherwise known as the Administrative Code of 1987, recognizes the residual powers
and the continuing authority of the President to reorganize.

NOW, THEREFORE, I, GLORIA MACAPAGAL ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby reorganize the Teacher Education
Council, by adding the Director General of the Technical Education and Skills Development Authority
(TESDA), or his duly designated representative, as member thereof.

All executive orders, rules and regulations and other issuances or parts thereof, which are
inconsistent with this Executive Order, are hereby revoked, amended, or modified accordingly.

This Executive Order shall take effect fifteen (15) days after its publication in a national
newspaper of general circulation.

DONE in the City of Manila, this 4th day of June, in the year of Our Lord, Two Thousand and
Eight.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 701 - 830]. Manila:
Malacanang Records Office.

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MALACANANG

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 730

ADDING TWO (2) PRIVATE REPRESENTATIVES TO THE BOARD OF ADVISERS OF THE
COMMISSION ON HIGHER EDUCATION

WHEREAS, the Presidential Task Force to Assess, Plan and Monitor the Entire Educational
System was created pursuant to Executive Order (EO) No. 652 dated August 21, 2007;

WHEREAS, the need to strengthen existing mechanisms to complement the role of the Presidential
Task Force for Education is necessary in synchronizing and harmonizing the entire education system;

WHEREAS, Republic Act (RA) No. 7722, otherwise known as the Higher Education Act of 1994,
created the Commission on Higher Education, and provided the composition of its Board of Advisers
in Section 7 thereof;

WHEREAS, there is a need to add two (2) new members to the composition of the Board of
Advisers;

NOW, THEREFORE, I, GLORIA MACAPAGAL ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby reorganize the Board of Advisers of
the Commission on Higher Education (CHED), by adding two (2) private representatives thereto.

All executive orders, rules and regulations and other issuances or parts thereof, which are
inconsistent with this Executive Order, are hereby revoked, amended, or modified accordingly.

This Executive Order shall take effect fifteen (15) days after its publication in a national
newspaper of general circulation.

DONE in the City of Manila, this 4th day of June, in the year of Our Lord, Two Thousand and
Eight.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 701 - 830]. Manila:
Malacanang Records Office.

457

MESSAGES OE THE PRESIDENT

ARROYO I Volume 4

MALACANAN PALACE
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 731

ACTIVATING AND REORGANIZING THE ENERGY OPERATIONS BOARD INTO THE
ENERGY CONTINGENCY TASK FORCE UNDER THE NATIONAL
FOOD AND ENERGY COUNCIL

WHEREAS, the Energy Operations Board was created under Executive Order (EO) No. 442
dated September 11, 1990;

WHEREAS, there are global clouds on the horizon that are driving up the cost of oil and food;

WHEREAS, the National Food and Energy Council was created under EO No. 728 (NFEC or
Council) date June 2, 2008;

WHEREAS, EO No. 728 mandated the absorption of the Council of Climate Change by the
NFEC;

NOW, THEREFORE I, GLORIA M. ARROYO, President of the Republic of the Philippines, by
virtue of the powers vested in me by law, do hereby order:

SEGTION 1. The Energy Operations Board is hereby activated and reorganized as the Energy
Contingency Task Force (ECTF), hereinafter referred to as the Task Force, under the National Food
and Energy Council.

SECTION 2. The Task Force shall be composed of the following:

a. Executive Secretary as head;

b. Secretary of Energy as operations officer;

c. Secretary of Trade and Industry as member;

d. Secretary of Budget and Management as member;

e. Secretary of Science and Technology as member;

f. Secretary of Social Welfare and Development as member;

g. Director General of the National Economic and Development Authority as member;

h. Chairman of the Commission on Higher Education as member;

i. Director General of the Philippine Information Agency as member;

j. Commander of the Intelligence Service of the Armed Forces of the Philippines as member.

SECTION 3. The Task Force shall be responsible for formulating plans and policies and ensuring
their implementation to address the impact of the rising cost of oil on the majority of the people.

SECTION 4. The primary responsibilities of the members of the Task Force shall be as follows:

a. The Executive Secretary shall provide overall leadership and oversight in the formulation and
implementation of the plans and policies of the Task Force.

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b. The Secretary of Energy shall be the chief operating officer of the Task Force and provide it
with the Secretariat and administrative support. He shall monitor oil prices and ensure the
implementation of energy efficiency, conservation and other mitigating measures.

c. The Secretary of Trade and Industry shall monitor the impact of oil prices on the commodities
purchased by the majority of the people and ensure the implementation of mitigation
measures.

d. The Secretary of Social Welfare and Development shall identify the beneficiaries of targeted
subsidies for the poor and facilitate the timely distribution of the subsidies such as the KATAS
ng VAT - Pantawid Koryente Program.

e. The Secretary of Budget and Management shall ensure that the proper budgetary allocation
for the projects of the Task Force are provided, especially the additional VAT and additional
Malampaya royalties from higher energy prices.

f. The Philippine Information Agency shall be responsible for information, education,
communication and advocacy campaigns of the Task Force.

g. The Secretary of Science and Technology, in coordination with the Department of Energy,
shall assist agencies, establishments and households install and/or adopt other energy saving
technology.

h. The National Economic and Development Authority shall assist the Secretary of Energy in
projecting oil price levels and shall formulate mitigation plans and policies for adoption and
implementation by the Task Force, including various Katas ng VAT and KATAS ng Malampaya
programs.

i. The Commission on Higher Education shall provide students loans and scholarships under the
KATAS ng VAT - Pantawid Pag- Aral Program.

j. The Intelligence Service of the Armed Forces shall issue timely intelligence assessment of
political and security developments related to the oil price issue and alert government offices
on the same. It shall provide advice on matters affecting national security.

SECTION 5. The respective primary responsibilities of the departments mentioned in Section 4
shall extend, as applicable, down to the regional, subregional levels, including the provincial and city
levels. The Task Force may organize Task Groups at various levels.

Local government officials may be invited to join the Task Groups is they so desire.

SECTION 6. Task Force may call upon other government departments and agencies for assistance
and support for the implementation of the objectives of this EO.

SECTION 7. All issuances, orders, rules and regulations which are inconsistent with, or contrary
to, the provisions of this EO are herby repealed or modified accordingly.

SECTION 8. This EO shall take effect immediately.

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MESSAGES OF THE PRESIDENT

ARROYO I Volume 4

DONE in the City of Manila, this 7* day of June, in the year of Our Lord, Two Thousand and
Eight.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Malacanang Records Office

Office of the President of the Philippines. (2008). [Executive Order Nos.: 701 - 830]. Manila:
Malacanang Records Office.

460

President Gloria Macapagal-Arroyo sits down for a brief three-on-one media interview
with the local press at the Showroom of the Sidlakang Negros Village in Dumaguete City.

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